Shanghai Sino US Economic And Trade Consultations Result In Short Term Or Influence Cotton Price Trend

In recent days, the focus of the market has been attracted by a large number of reports about China's large area of American agricultural products.

According to state authoritative media such as CCTV and Xinhua news agency, after the meeting between the heads of state of China and the United States, millions of tons of American soybeans were shipped to China. Meanwhile, the United States announced the exemption from tariffs on 110 industrial products exported to China, and expressed willingness to promote the continued supply of American enterprises for related Chinese enterprises. This shows the willingness of the two sides to implement the Osaka consensus.

Since July 19th, some Chinese enterprises have made inquiries to American suppliers for the purchase of new soybeans, cotton, pork, sorghum and other agricultural products. According to market conditions, there have been a number of agricultural products procurement transactions. The customs and Trade Commission of the State Council has applied to exclude the tariff imposed on imported agricultural products from the United States. Next, Chinese enterprises will continue to inquire about the purchase of American soybean, cotton, pork, sorghum, wheat, corn, dairy products and other agricultural products according to the needs of the domestic market and following the principles of marketization. As long as the prices of agricultural products in the United States are reasonable and of high quality, new agricultural products are expected to be concluded. China's relevant departments said that the US side should take concrete measures to implement the relevant commitments of the US side and create favorable conditions for bilateral economic and trade cooperation.

The issue of China's inquiry and purchase of US cotton has also attracted the attention of foreign markets. According to foreign news, China has signed 50 thousand tons of cotton and exempt from the added tariffs in the latest week. If the news is true, the purchase is expected to be reflected in this week's US cotton export weekly. International cotton prices have rebounded slightly in the past week. It is reported that the price of cotton fell to 61-62 cents a week when there were some transactions in the market, and prices may continue to rebound slightly in the short term.

However, unlike in the past, the outside world did not have high expectations for the twelfth round of Sino US economic and trade consultations held in Shanghai this week. Foreign commentators and analysts generally believe that China's massive purchase of US cotton will not last. The reason is that the number of US cotton purchases without tariffs is limited. Moreover, it is speculated that this may be a positive gesture before China's negotiations this week. The purpose is to hope that the US side will make concessions on the key issues of negotiations. China's continued massive procurement is based on continued major progress in the negotiations. Unless the two sides go further in negotiations, it is still very, very difficult for China and the United States to reach a consensus.