Market Impact Analysis Of 5 Grade Cotton Purchase And Storage

Yesterday, the China cotton reserve management company issued a notice, decided to start in 19 days, in Shandong Binzhou, Dongying, Hebei Cangzhou, Hengshui, Tianjin Jinghai five areas. cotton The quality standard of storage and purchase is relaxed from 4 to 5. The difference between grade 5 cotton and standard grade is 13%, that is, the price of 527 grade cotton is 17544 yuan per ton.

At this point, the market expectations of the 5 level cotton purchase and storage policy to be fulfilled, the market believes that this will help stabilize the domestic market cotton prices, but should not overestimate its positive impact on the cotton price.

Henan TongZhou cotton cotton researcher Zhao Nana told futures Daily reporters that the quality standards of cotton storage and purchase in the above areas should be relaxed to protect the interests of local cotton growers. "Affected by typhoon weather this year, cotton grades in some parts of Shandong, Hebei and Anhui are relatively poor. Due to the fact that local ginning mills are not actively buying, the majority of low-grade cotton is in the hands of cotton farmers, which has greatly affected cotton farmers' income." Zhao Nana said.

With regard to the market impact of the 5 grade cotton storage and storage, she said that even if this part of cotton is not stored, most of them are stored in cotton farmers in the state of seed cotton, so the policy will not substantially reduce the market supply.

Another analyst believes that after loosening the quality standard of cotton purchase and storage, the national cotton reserves will exceed 4 million tons this year, which will help maintain a stable cotton price during the storage period.

Jiang Yuelei, a cotton analyst at Jinyue investment company, thinks that the price of 17544 yuan / ton is higher than the average price of the 527 grade cotton market currently about 16500 yuan / ton, and the bottom of the domestic low grade cotton price will be raised accordingly after the expansion of the storage and storage. But for Zheng cotton price, because of the 5 grade cotton that can enter the futures market, the proportion of the second grade cotton itself is lower, and the current spot market is in a slump, and the consumption demand of the downstream continues to be sluggish. The rise of the 5 grade cotton price is difficult to significantly boost the cotton price.

According to statistics released by the General Administration of customs, China in October Spin product clothing The export volume was $22 billion 752 million, a decrease of 9.45%. It is understood that since November, China's textile and clothing export situation has not yet performed well, and downstream cotton industry is still facing difficulties such as weak external demand, order transfer, intensified foreign trade protectionism and domestic demand stagnation.

Jintai futures analyst Wang Nan believes that the underlying factor in determining the price of cotton in late stage is still downstream demand, and the huge inventory and future sale of state cotton will be limited. Cotton price The uplink space.