Cotton Prices Continue To Rise &Nbsp, Squeezing Profits From Cotton Textile Enterprises

In recent days,

Anonymous analysts believe that cotton prices exceed 20 thousand yuan / ton is inevitable, at present, the country's purchase price has reached 20300 yuan, so cotton at 18000 yuan will be directly limit.

However, the trend of cotton prices has not deviated from the fundamentals. The imbalance between supply and demand has led to higher prices and speculation is normal.

Yuan Renqing, an analyst with Baocheng futures, believes that besides the imbalance between supply and demand, the speculation of hot money is also cotton.

At present, the price of cotton is even higher and the upward space is completely broken.

26 morning, in order to ensure textile production demand for cotton production, the state will continue to sell 400 thousand tons of state cotton through auction.

At present, the price of cotton is crazy, although the selling of the reserve cotton can play a role in reducing the price, but because of the excessive supply gap in China's cotton, the selling effect of the medium storage cotton is not significant.

Yuan Renqing thinks that throwing a store in a sense is a bad check. A portion of the deposit can be used to stir up the price.

The soaring cotton prices have greatly reduced the profit margins of cotton textile enterprises.

"These days, the price of cotton yarn has just exceeded 30 thousand, and the weaving piece is hard to bear."

Yuan Renqing said.

For the future market, Yuan Ren Qing believes that cotton prices may be difficult to suppress in the short term. Some measures may be introduced at the National Cotton Conference in the morning of October, and the policy effect may appear after mid October.