Cotton Prices Fell Slightly At Home And Abroad, New Cotton Sowing In Full Swing

Last week (3.31-4.4), cotton spot prices at home and abroad showed a slight decline, and cotton yarn prices were relatively stable.

Before and after the Qingming period, with the rapid warming of temperature and the increase of rainfall, each cotton region has gradually entered the seeding period of cotton.

This year, Xinjiang and other places have adopted new technologies such as precision sowing, increasing the intensity of mechanized farming, improving the quality of cotton seeding and shortening the seeding time.

Last week, both sides of the domestic cotton spot market were subject to financial pressure, and prices continued to fall slightly.

In April 3rd, China's cotton price index (level 328) was 13811 yuan / ton, and the whole week fell 15 yuan / ton.

In the same period, Zhengzhou's cotton futures and electronic matching market also continued to oscillate. The recent contract price fell 125 yuan / ton and 74 yuan / ton respectively.

The management of textile enterprises is not optimistic.

The cotton textile association of China recently released the "cotton textile enterprise prosperity survey and analysis report", and conducted a special investigation and analysis of the business climate and sensitive issues.

The survey shows that although the production and sales of cotton spinning enterprises are still vigorous in 2007, the pressure on the external environment is getting heavier and heavier, and the competition in the domestic market is fierce.

The profit margins of 2/3 enterprises have been further squeezed, and profit margins are lower than those of the whole industry. Most enterprises are struggling, and nearly half of them want to switch to other industries.

Through the analysis of the internal and external environment, the report thinks that 2008 is a more difficult year for textile enterprises, and the increase of gauze output will fall further, and the industry will start a stable period.

Last Monday, the US Department of agriculture (USDA) released a forecast of crop acreage in 2008, where cotton planting area is estimated to be 9 million 390 thousand acres (57 million acres), 13% less than last year, the lowest level since 1983.

As the decline is less than market expectations, cotton futures contracts in New York futures market fell sharply, and later stabilized and continued to rebound slightly.

At the same time, international spot prices also fell, the Cotlook Far East A index was 74.7 cents / pound, down 1.6 cents / pound compared with the previous week.

The price index of China's cotton imports (FCIndex M) was 76.04 cents / pound in April 3rd, 13717 yuan / ton at 1% customs duty, lower than the 328 grade cotton in the same period, 94 yuan, 14227 yuan per ton, and 416 yuan higher than the 328 cotton in the same period.

SR