Cotton Price Shocks To Explore &Nbsp; Cotton Yarn Grey Cloth Fell.

Since entering the two quarter, at home and abroad

The sharp rise and fall of cotton prices, on the one hand, made the cotton hoarding enterprises suffer huge losses. On the other hand, it also brought a great impact to the downstream textile enterprises. The high price raw materials made the textile look forward but instead, the sharp fluctuation of prices further attacked the enthusiasm of purchasing.

With the deepening of the decline in cotton prices, textile enterprises are mainly consuming inventory, especially in the off-season of textile industry in July and August, and the demand for cotton is limited.

The market price of cotton has been a drag on the cotton market. Under the influence of "buying up or not buying", the price of cotton yarn is showing a drop in volume and price. However, the market turnover is bleak, which is mainly reflected in the high number of yarn stocks in spinning enterprises. According to the cotton information network, the yarn inventory has not been reduced to 35.02 days, which is far higher than the 10.33 days of the same period of last year, according to the survey of cotton spinning enterprises with a total volume of 12 million 300 thousand spindles.

Stimulated by high cotton prices in the second half of last year, cotton planting area in the new year has generally increased over the previous year.

Although the market has been hyping the weather factors, according to the latest US Department of agriculture report, the cotton inventory consumption ratio will increase to 43.68% next year, or the situation that cotton supply will be tight will be eased.

Fresh cotton at present

On the whole, under the environment of increasing uncertainties in the international economy and the continuation of the domestic regulatory policies, the cotton market is expected to continue to shake down in the short term under the anticipation of increasing supply and weak demand.

At present, we can pay attention to the consumption of cotton yarn and the trend of cotton yarn prices. The price of cotton yarn has stabilized and the drop in inventory may have boosted the cotton market, but there is no sign of recovery.