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    The Supply Of Cotton Market Will Be Tight In October 2012

    2012/10/12 21:35:00 23

    Cotton AcquisitionSupplyCotton Market

    After entering the October, various regions

    cotton

    The volume of trading has increased further, while the issuance of national cotton reserves has come to an end. Most of the import quotas have been exhausted, but the distribution is hard to predict, and the supply and demand of cotton market has changed again.

    Under the multi-party game, the cotton market will be deadlocked in October.


    Storage in October was slightly stricter.


    From the current situation of more than a month's acquisition and storage, the cotton ranks for the new year are not as good as 4 grades except for some parts of Shandong. Cotton purchase is still on the sidelines.

    However, in terms of quality testing, cotton traders believe that some new grade quilts with enough grade 4 are detected at grade 5, and the packaging requirements are more stringent.


    Because the quality grade of the national cotton reserves will be reduced and the premium is paid, the more stringent storage standards are not only the policy requirements, but also the guarantee of the quality of the national cotton reserves.

    In addition, according to the calculation of the new cotton 2/3 flow to the national reserve this year, it is estimated that more than 4 million tons of new cotton will go to the national reserve, but more than 2 million tons of new cotton will go to the market.

    No matter from the angle of ensuring the level of national storage and storage of cotton, or from the total storage capacity this year, the strict storage requirements will continue in October and some of the new cotton will go to the market.


    Cotton supply will be tight in October


    In terms of purchasing and storage this year, the total number of state-owned cotton stores in September totaled 382 thousand and 500 tons, of which Xinjiang cotton accounted for 87.5%, and by the end of September, the total market turnover accounted for 40.26% of the planned storage.

    Judging from the volume of daily turnover, the Xinjiang region entered the peak period of storage and delivery at the end of September, while the mainland still had a larger growth space, such as the 44 thousand and 800 tons of mainland pactions in October 8th, a substantial increase compared to the national day.

    Therefore, there is room for further increase in the volume of daily purchases in October.

    Although there are only 300 to 400 yuan per ton in some areas, the space is limited, but because the purchase of new cotton will not be directly faced with losses, cotton producers will still use the storage as the main way of selling cotton.


    As for the September national cotton storage, because the overall consumption of cotton continues to be weak, and the volume of turnover will decline first, the Central Cotton store announced that after September, it will suspend the news of the national cotton storage and then increase rapidly.

    In addition, most of the current import quota of cotton imports has been used up, the new import quota is hard to predict, and at the same time, the national cotton reserves are suspended. Some new cotton will go to the market to supplement the market supply if the storage and storage are slightly stricter.


    Although the current cotton business inventories and industries are still relatively high, cotton producers will mainly flow to the national reserve and downstream.

    Spin

    Enterprises are continuous production, raw material procurement will not be interrupted.

    In the case of limited sourcing of cotton from textile enterprises, the supply of cotton market will be tight in October.


    Cotton consumption is hard to see.


    Since June, yarn stock and grey stock have increased in textile enterprises, which is not consistent with inventory reduction in most years in most years. The main reason is that the downstream consumption is weak, and the inventory of enterprises is difficult to digest, so that inventories do not decrease or increase.


    At the same time, data show that in August, China imported 305 thousand and 500 tons of cotton, an increase of 98 thousand and 500 tons over the same period, an increase of 47.58%.

    In 2012 1 to August, China imported 3 million 766 thousand and 500 tons of cotton, an increase of 123% over the same period last year.

    The continuous increase of cotton imports has a strong impact on the domestic cotton market.

    In August, China imported 151 thousand and 600 tons of cotton yarn, an increase of 114% over the same period, an increase of 11.4% over the same period, and the increase was very obvious.

    In spite of the huge internal and external cotton price gap, cotton yarn imports still have room for growth, which is more obvious for domestic cotton consumption.


    We suggest that cotton traders should take early procurement, quick processing and early storage strategy to ensure the profits of new flower storage.

    In addition, pay attention to the collection and storage efforts once

    store up

    Tighten up, that is, keeping the value of cotton in stock, and at the same time, spinning enterprises should maintain relatively low inventory operations that meet production needs.

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