Cotton Prices Hit A New High: &Nbsp; &Nbsp; Clothing Companies Began To Stock Up.

　　 cotton Prices have been rising since the end of last year, and they are heating up in the near future. In October 8th and 11th, cotton futures in Zhengzhou futures exchange reached a daily limit for two consecutive days. At present, the price of 24325 yuan / ton rose by nearly 40% compared with the lowest price of 17455 yuan / ton in September 1st. "Crazy cotton" has made many people who have been struggling for many years in the textile industry exclaim "do not understand".

　　 capital Speculation is the main reason.

Analysts pointed out that soaring cotton prices are related to the background of weather and supply and demand. This year's weather factors caused the domestic cotton picking period to be postponed and the quality declined. At the same time, India suspended cotton exports for a while, and domestic cotton enterprises' demand has been increasing. However, in view of the rising tide of cotton prices in the second half of this year, analysts have spearheaded the speculation of hot money.

Zhang Bin, an analyst of state textile securities in cotton textile industry, pointed out that since the beginning of this year, not only did there still be funds for cotton speculation in the past years, but also new funds had been added. They accumulated profits in the spot market and gained huge profits in the futures market. "Under the so-called market expectations and the participation of hot money, soaring cotton prices become inevitable."

An industry source revealed that some cotton processing enterprises in the processing and circulation areas also had the habit of hoarding cotton, which helped to increase cotton prices through low price hoarding of cotton for profit.

Speculators poured into Xinjiang.

Rising cotton prices will lead all kinds of hot money to Xinjiang, the largest cotton producing area in China. One family cotton spinning The person in charge of the business said that every day, people with large sums of cash poured into the cotton producing town of Akesu, with the most capital of Zhejiang businessmen. With the rise of cotton prices, the speculators have split up, and the old speculators have begun to hesitate. The new speculators are not afraid of risks and buy Cotton very aggressively.

Clothing companies are trying to hoard raw materials. YOUNGOR group has announced in Akesu a cotton spinning investment project with a total price of 1 billion yuan, which will provide YOUNGOR with 450 thousand spindles of cotton spinning production capacity each year to ensure YOUNGOR's raw material supply.

Pushing new costs to shift costs

Faced with the trend of "guiding the price of cotton every day", the textile enterprises generally feel anxious. "In recent years, the price of raw materials has gone up a bit more than we expected." Chen Lingmei, chief executive of Shenzhen winning apparel, a leading high-end middle-aged women's clothing, told the Beijing Morning Post reporter that the price of its brand clothing has not changed, but "next year it's hard to say."

According to the reporter, clothing enterprises to shift the cost of raw materials rising pressure is more subtle way is the introduction of new clothing. Insiders said that this is not easy to trigger the consumer's resistance, because there is no price comparison, consumers are generally not easy to detect.

Textile and apparel stocks plunged

Because investors worry that the high price of cotton will bring greater cost pressure to textile and garment enterprises, the related stocks have fallen sharply in the past 5 trading days.

Fuanna and Roley home textiles have lost 12.08% and 12.76% respectively in the past 5 trading days. In the past 4 trading days, the United States apparel and seven wolves have fallen continuously, with a cumulative drop of nearly 10%.

Many textile and garment enterprises say they will shift the cost pressure of cotton price rise by adjusting the terminal selling price. Analysts believe that prices will eventually lead to slower growth in profits of these enterprises. As long as cotton prices continue to operate at a high level, textile and apparel related stocks will not get better.

Commodity futures continue to rise

As of yesterday's close, the main contract of the Shanghai futures exchange gold futures rose 1.75%, a new record high. In the international market, gold futures prices crossed the $1380 / ounce mark. The market price of New York crude oil has been maintained at about US $85 per barrel recently. Cotton futures contract of Zhengzhou commodity futures exchange rose 4.02% yesterday.

A large domestic Futures Company analyst said that the price of gold and cotton commodity futures is no longer determined by supply and demand. The market is entirely driven by hot money, and the future market depends on the change of international currency liquidity.