Cotton Is In Short Supply And Prices Continue To Rise.

Cotton vice tension trend unabated cotton prices continue to rise

At present, market participants expect the chairman of the Federal Reserve to say in the Congressional speech that the Federal Reserve will take additional measures to stimulate economic growth, which will lighten investors' concerns about the economic growth prospects, and the new house building data in June are better than expected. In the evening of July 20th, the us shares rose again, and the impact of the storm intensified in the Caribbean Sea and the expected tightening of US crude oil supply, the international crude oil futures rose sharply, reaching a high level of three weeks, bringing great support to the domestic and foreign commodity markets. Domestic weather forecasts show that in late July, the rainfall in the Yangtze, Huaihe and Huaihe rivers will be much higher, and rainfall in some areas will be strong. This will not be conducive to cotton budding and normal growth of summer sown crops. The output of new cotton and the time to market will be affected, which will directly aggravate the tension of supply in the sub market of cotton, and the price of cotton in some areas will continue to rise.

July 21st, China cottonseed Supply is tight, and some areas are still rising. At present, the supply of seed cotton is coming to an end. Most cotton processing plants have been closed for production, making cottonseed output rather limited. In recent years, many cotton producing areas have frequent rainfall. People are worried about the new cotton output and the time to market. They are beginning to worry about the supply of cottonseed in the new year. The purchase price of cottonseed has steadily increased.

Demand for cotton oil has continued to improve, and the market has steadily gained. Due to the need for the Mid Autumn Festival and National Day preparation, small package products are increasing gradually. In August, the supply of cottonseed oil will go into the stage of no longer green. The oil refineries are generally optimistic about the future market, and the willingness to raise the price of cotton oil at present is obviously enhanced. It is estimated that domestic cottonseed oil will remain stable and strong in the short term. It is estimated that the price of cottonseed oil in the northern region will reach 7000 yuan / ton in August.

The purchase and sale scale of cottonseed meal is still recovering, and the market is going up. With the rising price of soybean meal, the price difference between domestic cottonseed meal and soybean meal has increased, and the demand for cottonseed meal has improved. Most of the oil plants have stopped production, and the supply of cottonseed meal has decreased significantly. Under the condition of good demand, the price of oil refinery will increase, and the domestic cotton meal market is rising slowly.

　　 Cotton lint Supply is tight, and quotations have been raised in many areas. At present, although the demand for downstream products is still sluggish and the market prices have further dropped, cotton short staple supply is still tight, and the holding companies take the opportunity to raise their prices. Meanwhile, intermediaries and downstream manufacturers begin to replenish the goods, prompting the cotton lint market to rise.