Cotton Remained &Nbsp, And Trading Continued To Slump.

The cotton harvest will be higher on Monday.

Zheng cotton 1205 contract maintenance today

As for the domestic sector, as of November 14th, a total of 464010 tons were accumulated, of which 331080 tons were accumulated in Xinjiang and 132930 tons in the mainland. Most of the cotton sold in the State Reserve came from Xinjiang.

Unlike the fact that the national reserve business is booming, domestic cotton prices continue to go down.

At present, the price of spot market in the domestic market has dropped to 18560 yuan / ton. At the same time, a large domestic textile enterprise has reduced the purchase price of grade 3 cotton to 19300 yuan / ton, which is lower than the 19800 yuan / ton storage price of the national reserve.

Therefore, under the condition of poor textile industry, cotton processing enterprises continue to look down on the future cotton price, and are more willing to hand over cotton to the national reserve.

Cotton production is projected at 7 million 290 thousand tons in the new year, up 9.84% over the previous year.

Consumption is expected to be 9 million 906 thousand and 300 tons, down 108 thousand and 900 tons or 1.09% compared with the same period, and the final inventory is expected to be 2 million 950 thousand and 100 tons, an increase of 424 thousand and 600 tons or 16.81% over the previous year.

Future consumption may also be further reduced, and overall supply and demand will be more relaxed than last year.

From the perspective of supply and demand, due to the ease of contradiction between supply and demand of domestic cotton and the increase of international cotton resources, the domestic cotton supply and demand can be basically balanced through effective utilization of international market resources.

From the policy level, the introduction of temporary purchasing and storage policy has provided strong support for domestic cotton prices.

In the new year, domestic cotton prices will be mainly stable, and there will be no ups and downs.

Judging from the trend of the disk, Zheng cotton 1205 opened higher today, with a narrow range and a slight increase in positions.

Cotton trading is sluggish in the near future and the trend is going sideways. In the future, it will be dominated by a narrow range of shocks.

At present, it is recommended to wait and see in operation.

The above views are for reference only, not as market participants.