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This Week The Cotton Market Continued To Depreciate &Nbsp, And The Deal Remained Cold.

2011/5/17 14:45:00 64

Chart of cotton market price trend

Cotton market continued to plummet this week, the 3 spot real estate cotton spot market quotation early week at 25655 yuan / ton, weekend offer 24895 yuan / ton, or 3% or so; the 3 grade Xinjiang cotton mainland market quotation also began to drop this week, basically dropped to 30000 yuan.

There is little deviation from the mainstream quotations in various regions, but the interaction is huge. As for this week, a large cotton enterprise in Dezhou, Shandong, has continuously lowered cotton prices. The lowest price of the 3 grade real estate cotton is 24000 yuan / ton, and the decline is obvious.

Two, market analysis

This week

Cotton spot

As the market goes down, the average price of the 3 grade real estate cotton market is basically hovering around 25000 yuan / ton, and the selling price of the enterprises is even lower, and the actual turnover is light.

In the middle of the cotton market this week, there was a slight rebound under the stimulation of Zhenghong cotton Pan Hong, but as a slight adjustment, the rate of price decline eased.

According to past years, it was supposed to be the peak season for textile production in 4 and May, but this year's orders are very few. The original market expectations for the Canton Fair are very low, so the price of the Japanese market is still flat, so the cotton price has not been effective in the Canton fair, and the price trend is still unchanged. In addition, the cotton yarn in the spinning mill's stock can not be sold and the funds are occupied very much, so it directly restricts the purchasing power and the cotton price trend of the manufacturers. Compared with the cotton grade comparison, the prices of high-grade cotton and Xinjiang cotton are relatively stable this week, and the drop is not big.

On the periphery, orders for domestic textile industry have been slightly reduced, and the US list and EU are not ideal, but the Korean list and others are not ideal.

economic region

The foreign currency side also knows that China's cotton price is falling, so the wait-and-see is not for Chinese textiles.

Three, the forecast for the future market

This week, cotton prices continue to decline since March, and have been breaking through the cut-off point of the industry division - 25000 yuan, which has to show that the cotton price reduction is no longer a temporary market adjustment, but a real industry change.

From the perspective of the whole market, the cotton futures market is much different now. Although the recent cotton price has been falling, cotton prices show a post market impetus from the cotton futures. Therefore, the cotton enterprises' confidence in the long term bullish is that it is only a small turning period.

However, the 109th Canton Fair did not.

textile industry

How much power it brings.

For this reason, business community Textile Division analysts believe that because of the increased pressure on cotton business sales, and other downstream cotton yarn and other stock pressure surge, cash flow will be a problem, so cotton prices may continue to be weak in the near future, but the terminal amplitude should have a rational cut-off point, and for the future market, many business people will hope for cotton production and new cotton, budgetary situation cotton price will rebound, and for the rebound price, in the previous market situation, coupled with the market trend at the moment, 30000 yuan should be the upper limit of the lint rebound. After all, this price should belong to a rational range for the whole industry.