Inventory Led To Cotton Prices All The Way Down &Nbsp; Textile Industry Gradually Difficult.

Zhengzhou Commodity trading The cotton main contract CF1109 fell below 25000 yuan / ton integer, closed at 24640 yuan / ton. Decline Up to 5.9%. In just 2 months, cotton futures fell by about 10 thousand yuan. There are institutional analysis, with the new cotton planting area increased, cotton prices next year will be difficult to run at the price of 30 thousand yuan / ton. Yang Guoqi, a researcher at Jinshi futures cotton group, told reporters: "at present, futures prices Hang up with spot prices, market prices and cost prices hang upside down. " Downstream clothing and textile enterprises have fewer orders and more inventory is the root cause of cotton price inversion.

Due to the continued appreciation of the RMB this year, the profit margins of domestic garment export enterprises have been sharply reduced. At present, the European and American orders have shifted to Southeast Asian countries. A large number of small and medium-sized foreign trade export enterprises had to stop production, and the demand for cotton textiles was sharply reduced. Downstream demand is not strong, the cotton spinning enterprise's life is also very difficult, but the inventory is higher but it is difficult to digest at the moment. Some cash strapped cotton mills chose to stop production, while others chose to promote the return of funds. In this situation, the market has basically ceased the purchase of raw seeds and cotton, and cotton seeds on cotton farmers are hard to get rid of, and it also affects the seeding confidence of cotton farmers in the new cotton season. Yang Guoqi believes that at present, the entire textile industry has generally entered a difficult "out of stock period". "If cotton futures prices can not be supported at 24500 yuan / ton, they may continue to explore until the purchase price is 19800 yuan / ton."