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Spot Demand Downturn, Zheng Cotton Will Continue To Decline

2011/4/15 9:51:00 57

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Managing Zhengzhou Cotton Market

The near future,

Zheng cotton

There was an accelerated downward trend after the shock finishing.

I believe that in a variety of negative pressure, Zheng cotton will continue to decline in the medium term.

Domestic textile enterprises do not sell well, resulting in a weak demand for cotton sales.

Textile enterprises in recent months

Management

Difficulties, high cotton prices and appreciation of the renminbi and other factors compress their profit margins. Yarn prices in textile mills continue to fall, resulting in poor sales and serious backlog of finished products in textile mills.

Because the sales of textile market is not ideal, the ability of textile enterprises to pick up the lower reaches of the textile market is weak, and the amount of polyester used in the market is increasing, which greatly reduces the demand for cotton.

The anticipation of national price control is bound to suppress cotton prices.

March C PI data will be released soon.

market

It is predicted that the C P I data in March will rise by 5.3% over the same period.

If the news is confirmed, it will urge the country to tighten up its liquidity.

In April 13th, the Executive Council of the State Council pointed out in particular that the most important task at present is to stabilize prices, which will further increase the interest rate hike in the market, and the commodities represented by cotton will inevitably be under pressure.

At the same time, the global cotton planting area has increased and the market cotton production is expected to increase.

According to the April report of the International Cotton Advisory Committee, global cotton production is expected to increase by 12% in the year of 2011/2012, with a record growth of 27 million 400 thousand tons.

This will to a certain extent alleviate the contradiction between the continuous reduction of world cotton inventories.

To sum up, under the pressure of weak domestic demand, tight state liquidity and increased cotton production, Zheng cotton will continue to decline, with short-term support at 28000.