Since the beginning of this year, the world's major cotton suppliers have been affected by extreme weather, and cotton production has decreased. Due to the extreme weather in various countries, the global cotton price has soared as high as 30%. It is reported in the market that India, the world's largest cotton producer, suffered from persistent rainstorms and pests and diseases this summer, which seriously affected India's cotton production and forced the country to import cotton from overseas this year. Global cotton prices rose by 30% due to high temperature. What is the impact on the textile industry?

Will cotton prices go up or down next? Statement 1: The United States and Brazil together account for half of the world's cotton exports. Judging from the forecasts of these two countries alone, the cotton supply situation may not improve in the second half of the year. Statement 2: Although new cotton grows well all over India, with the increase of rainfall, the growth situation in the next half month is very critical. Statement 3: If there is no major disaster in the weather in the main cotton producing areas in the later period, the global inventory consumption ratio may still rise at the end of the period. Generally speaking, high temperature and dry weather have a great influence on cotton prices. The price trend of cotton in the second half of the year will be determined by the next weather, so we should always pay attention to the market dynamics.

The US government and analysts had expected that global cotton demand would decline, especially in Europe and Asia, due to the decline in clothing purchases and the economic slowdown. However, Andy Ryan, senior relationship manager of Hedgepoint Global Markets, a market analysis organization, believes that all indications indicate that the downward pressure on the cotton supply side is far greater than that on the demand side. With the decline of cotton production, the price of cotton will "rise sharply" in the coming months. Not only cotton, corn, wheat and other crops will also be affected. Recently, the extreme high temperature weather above 40℃ in the northern hemisphere is causing harm to global crop production.

At present, the agricultural futures market is facing two negative factors: the weakening demand under the expectation of economic recession and the return of Ukrainian agricultural products to the market. The weather premium of agricultural products is not obvious. However, if the drought lasts too long, the impact cannot be underestimated. The good news is that as time goes by, autumn is coming to us, and this difficult summer in the northern hemisphere is about to pass.