Cotton Prices Continue To Rise After Holidays

Concerned

Prior to this, the average price of electronic contract pactions in the 25 cotton trading market all increased substantially compared with the pre holiday period, of which the average contract price reached 2 in October.

150 thousand yuan per ton, up 8% before the holiday; on the 26 day, the average price of all cotton contracts reached by the national cotton trading center increased by 4% over the previous day.

At the same time, the China cotton reserve management company sold cotton reserves for two consecutive days (25, 26 days) after the holidays, selling more than 20 thousand tons on a single day, and prices continued to maintain a rapid upward trend before the holiday. Of them, the reserve cotton price increased by 1747 yuan per ton compared with the first quarter, and the annulus rate rose the most this year.

In fact, cotton prices have started to rise since August.

Taking reserve cotton as an example, the average paction price has been reduced by less than 1 from the lowest in mid August.

70 thousand yuan rose to more than 2 per ton at present.

20 thousand yuan, since the middle of September, it is showing an accelerating trend, of which the standard price per ton of cotton reserves has increased by 927 yuan, 900 yuan, 636 yuan and 1747 yuan in the last four trading days compared with the previous day.

Cotton prices rose

It is worth noting that at present, some textile enterprises are unable to bear the current high cotton price and begin to suspend production and leave. Cotton yarn prices are still at a high level, but the downstream businesses are buying on demand, with insufficient volume, and the market wait-and-see mentality is increasing, and the harm of soaring cotton prices has gradually emerged.

Many people in the industry attributed the rise in cotton prices to cotton supply and demand.

On the one hand, due to weather factors, cotton picking has been postponed, the quality has declined, and India has suspended cotton exports for a while. On the other hand, domestic and foreign cotton textile products are in great demand. In the first 8 months, China's textile and clothing exports increased by 23 over the same period last year.

8%, some market participants believe that the supply and demand of cotton will be reduced to the direction of inventory reduction in the coming year.

However, some analysts pointed out that capital is the key factor to drive the cotton price soaring.

Domestic cotton has always been skyrocketing and plummeting. The key reason is that some processing areas, circulation areas and cotton textile enterprises always expect low price hoarding of cotton to make profits, causing sharp changes in the inventory of enterprises and society, resulting in a sharp rise and fall in cotton prices.

Zhang Bin, an analyst of state textile securities, which keeps track of cotton textile industry, pointed out that this year's funds not only involved in cotton speculation in the past years are still in existence, but also new funds have been added. Obviously, some funds have been stockpiling goods through the spot market, and have gained huge profits in the futures market.

"Under the so-called market expectations and capital participation, the soaring cotton prices become inevitable."

Many people in the industry interviewed in an interview pointed out that cotton price inflation is harmful and not worth a profit.

On the one hand, if cotton prices go up further, the upward pressure will soon be pmitted to the downstream textile and garment industry. The rise in clothing prices is unavoidable. When the global economy has not yet recovered, the textile and garment industry will inevitably be damaged. On the other hand, if the cotton price rises sharply and then falls sharply, the harm will be even more difficult to predict. Before the cotton price stabilizes, the efficiency of cotton spinning enterprises is likely to decrease significantly.

Statistics show that from 2003 to 2004, cotton prices have seen a sharp rise, ranging from 1 per ton in half a year.

20 thousand yuan to 1.

80 thousand yuan, and fell to 10 thousand yuan in half a year, during the same period, shortly after the establishment of the central storage cotton company huge losses.

Zhang Bin said that cotton has a certain financial property, the capital has a great impetus to its price, and it is expected to further increase the difficulty of cotton prices. At present, cotton prices are in the top area. However, considering that a large number of new cotton are to be listed in late 10 months, "the possibility of cotton prices continues to be crazy".

The rapid rise of cotton prices has aroused concern and attention from relevant parties.

China Cotton Textile Industry Association held a meeting on 18, to discuss the current market situation of cotton raw materials and the problems faced by the textile and garment industry.

And the national cotton development teleconference held by the national development and Reform Commission, the Ministry of finance, the Ministry of agriculture, the General Administration of industry and commerce, the General Administration of quality supervision, inspection and quarantine, the supply and Marketing Corporation and the Agricultural Development Bank were also held on 27. In addition to analyzing the current cotton production and marketing situation, the conference will also study and deploy the 2010 cotton work.