The Cotton Market Is Not Selling Well In The Peak Season &Nbsp; The Purchasing And Storage Mechanism Is The Bottom Cotton Price.

Every year 3 and April are

At the same time, large-scale cotton production in China

Cotton prices continue to fall close to cost lines.

28000 yuan / ton is regarded as the cost line by the cotton trading market. Recently, the cotton main contract CF109 of the Zhengzhou commodity exchange has been dropping steadily, which is getting closer to 28000 yuan / ton mark.

Trading in the spot market is also not optimistic.

Markets are fragmentary and offer confusion.

Downstream demand is not strong, so that before selling cotton prices and psychological psychology and cotton mills began to change their attitude.

Mr. Song, a cotton trader in Shandong, used to offer quotations on the major cotton trading websites to wait for buyers to contact. But recently, he has quoted various quotes that have been expired.

Mr. Song revealed that when negotiating prices with textile mills recently, he often waited for the textile mills to quote the price first, and then decided the paction price according to the price they could afford.

The reason for the change in Mr. Song's attitude is that cotton business is becoming more and more slack.

The situation that the downstream enterprises take the initiative to come to the house to talk about prices is also significantly reduced.

Mr. Song told me that the spinning mill had been overcapacity for a long time. It was not expected that the shipment was expected to be the traditional peak season in 3 and April, but now it seems that the market is not as good as expected.

There has been a temporary shutdown in the textile factory where Mr. Song has been contacted, because the owner of the textile mill believes that the production will continue to lose more than the shutdown.

The main cotton trading website revealed that the current market price of cotton in Xinjiang remained at 31000 yuan / ton, and the price of cotton in Henan, Shandong, Jiangsu and other real estate ranges from 28500-29000 yuan / ton.

However, according to a number of institutional analysis, despite the weakness of spot trading, based on cost line factors, cotton prices in the 28000 yuan / ton strong support.

A survey report of Sheyang Cotton Association of Jiangsu mentioned that before the new cotton market came into existence, with the continuous decline of raw cotton inventory in textile enterprises, there must be a "buy". Therefore, "no shortage of goods sold" supports the temporary sale of cotton enterprises.

A cotton trader told the author that there is a reduction of cotton production in the downstream enterprises, but this reduction still can not offset the demand gap.

Now the cotton stock in the textile enterprises is still sufficient, which leads to the cold trade.

When the downstream demand for raw materials increases, the market will become more active.

The cotton trader thought cotton prices could not go down all the way.

Cotton storage plan to stabilize planting confidence

In March 30th, the national development and Reform Commission issued the "plan", and decided to implement the temporary cotton purchase and storage system from 2011.

In the plan, it is clear that the cotton temporary purchase and storage plan in 2011 will be implemented in 13 major cotton producing provinces (districts and cities), such as Xinjiang and Shandong, and the temporary storage price will be 19800 yuan per ton from the standard lint to the warehouse. The execution time is from September 1, 2011 to March 31, 2012.

The relevant experts of the Policy Research Office of the NDRC believe that the establishment of the temporary storage and storage system and the timely release of the "plan" have been a "reassurance" for cotton farmers on the eve of the spring sowing of cotton, which is conducive to protecting cotton farmers' enthusiasm for growing cotton and stabilizing cotton production in 2011.

China Cotton Association's cotton planting intentions survey in March showed that the cotton planting area increased in most parts of the country due to the high level of cotton purchase price, but the growth rate was limited by labor force, cost and comparative benefits. It is estimated that in 2011, the total area of cotton planting in China was 80 million 960 thousand mu, which increased by 5.1% compared to the same caliber, which was lower than that of the previous 84 million 550 thousand mu.

In addition, the planting area of major cotton producing areas in the world will also increase significantly in 2011.

This means that the price of cotton will continue to cool down for a long time.

There is a view that the next 3-6 months may be the last chance for cotton and yarn manufacturers to sell high priced stocks upstream of the textile industry chain.