Cotton Futures Prices Continue To Climb &Nbsp; Demand For Textile Enterprises Increased Sharply.

Cotton futures hit a new high

Yesterday, Zheng cotton continued to lead the commodity market, the main contract 1105 closed at 28770 yuan / ton, or 2.46%, once again refresh the historical record.

The trend of international cotton is still strong. As of press release, US cotton quotes 134.26 US dollars, up 3.87%, to a new high.

Jiang Xingchun, an analyst at grain futures, said that the rush to buy cotton seeds was prevalent in China, pushing up the price of cotton.

In addition, the market is worried that the Federal Reserve's quantitative easing monetary policy will continue this month, thereby pushing up international cotton prices.

"Now the mainland enterprises purchase cotton from Xinjiang, the seed cotton price is as high as 12.6 yuan / kg, and the price of lint cotton is about 28000, and Anhui seed cotton has received more than 6 yuan.

The key point is that high grade cotton is in short supply. Only after January can India cotton be released to China. There are no 3 grades of cotton in many places.

It is understood that yesterday, a large textile group in Shandong raised the price of lint purchase, the 3 level price was 28500 yuan / ton, and the 4 level price was 28200 yuan / ton, all of which rose 1000 yuan / ton compared with the end of October, and the 3 grade cotton and futures main 1105 contract price was quite similar, and the spot price had obvious support for the futures market.

Liu Qing, an analyst at new lake futures, said that domestic cotton spot prices will remain high until domestic cotton is listed on a large scale, cotton exports to Hong Kong, or seed cotton purchase price has not dropped significantly.

It is suggested that the futures operation of cotton futures should remain long before the spot price reverses.

According to industry sources, with the continuous rise of cotton prices, more and more companies have recently requested to do business in Futures Company.

"Now that textile enterprises open up more customers to the Futures Company, the cotton enterprises will choose to do some hedging to avoid the risk of high cotton prices in the present historical highs."

Jinshi futures analyst Qu Cheng told reporters.

Zhang Junling, a Dongxing futures analyst, told reporters that in recent days, from the boss of a large textile enterprise, the cost pressure of spinning enterprises is very high, so most of them consider making hedging.

"Downstream brand clothing enterprises also have interest in hedging, brand clothing is worried that downstream manufacturers because of rising raw materials and breach of contract, the emergence of arbitrary price increases, mainly to avoid market risks."

Shanghai mid-term analyst sees thunder thunder.

"Enterprises should consider hedging the futures market from the risk of big fluctuations."

Zhang Junling said, "textile enterprises spend nearly 1500 tons of cotton per month, but basically they are all spot purchases. Now the pressure and risk are very large, so they want to avoid risks from the futures market.

If these cotton enterprises are hedging early, then the cotton price increase will not only lock costs, but also have additional benefits.

Since October 1st, the cash base of cotton has been close to 4000 yuan from nearly 0 to October 29th. If the total amount of hedging is guaranteed, the cost of locking will remain at 19000.

However, many people in the industry pointed out that some enterprises are "selective" in doing hedging.

"Sets have natural disadvantages, so many enterprises are doing selective hedging.

Selective hedging is the first trend judgment, for example, now strong rally, try to avoid short hedging.

Analysts see thunder.

See the thunder mine analysis, according to the principle of hedging, textile enterprises buy cotton on the spot, in the future, they will sell the same cotton to keep their stock value according to the traditional hedging. Obviously, at this stage, cotton stocks are not enough, and prices continue to rise, so they can not make short hedging, which will lead to greater losses. Therefore, textile enterprises are now buying at low prices, buying hedging, and taking the futures market as a good source of raw materials.