Cotton Continues To Weaken And Cotton Continues To Go Down.

　　 I. domestic Cotton price Continued weakness

This week, the market continued to wait for the direct subsidy rules to be promulgated. Domestic textile enterprises could reduce raw material inventory as far as possible, and domestic cotton prices continued to weaken. In July 4th, the average selling price of the standard grade lint in the mainland was 17294 yuan / ton, down 27 yuan / ton compared with last week, or 0.2%, down 1952 yuan / ton, or 10.1%; the average price of Xinjiang standard lint sale was 17297 yuan / ton, down 33 yuan / ton compared with last week, or 0.2%, down by 2207 yuan per ton, or 11.3%. Zhengzhou cotton futures contract settlement price of 16630 yuan / ton in July, down 245 yuan / ton compared with last week, or 1.5%, down 4230 yuan / ton compared with last week, or 20.3%. The national cotton trading market electronic matching transactions in July the average contract price of 16443 yuan / ton, compared with last week fell 226 yuan / ton, or 1.4%, down 2889 yuan / ton, or 14.9%.

This week National cotton reserves The sales volume of the outlet was 62 thousand tons, 1 thousand tons less than last week, and the reduction was 1.5%. In 2013, the sales volume of the national cotton store went up to 2 million 99 thousand tons.

　　 Two, the international cotton prices continue to go down.

This week, the main U.S. Cotton producing area Good weather conditions will help increase production. China's textile enterprises continue to purchase cotton as they go shopping, while international cotton spot and futures prices fall. In July 4th, New York cotton futures contract settlement price in July was 80.9 cents / pound, down 4 cents / pound, or 5%, compared with last week. The international cotton index (M), which represents the average price of the Chinese main port on the import cotton, is calculated at 1% tariff. The cost of import of RMB is 13968 yuan / ton, down 443 yuan / ton, or 3.1% yuan, lower than the domestic market 3326 yuan / ton, the price difference increased 416 yuan / ton compared with last week. According to the sliding tax, the cost of import is 15069 yuan / ton, down 312 yuan / ton compared with last week, or 2% yuan, lower than the 2225 yuan / ton in the domestic market, and the price difference increased by 285 yuan / ton last week.

　　 Three, domestic cotton yarn prices fall, polyester staple fiber prices continue to rise.

This week, the domestic yarn and cloth market remained cool, and the yarn price continued to decline. PTA prices continue to rise, resulting in polyester staple fiber prices continue to rise. In July 4th, 32 cotton combed yarn prices were quoted at 24540 yuan / ton, down 50 yuan / ton, or 0.2%, down 1340 yuan / ton, or 5.2%; polyester staple price 9565 yuan / ton, up 20 yuan / ton, or 0.2%, down by 325 yuan / ton, or 3.3%.

　　 Four, analysis and Prospect

International cotton prices continue to decline. This week, the employment situation in Europe and the United States improved, the US unemployment rate in June was 6.1%, a decrease of 0.2 percentage points from last month, a new low in September 2008, a 11.6% unemployment rate in the euro area, a 0.1 percentage point decrease from last month. On the 20-26 day of June, the United States signed a net contract for export of 7 thousand and 900 tons of land cotton this year (a significant increase over the previous week, 58% less than the average of nearly four weeks), and 3.87 tons of shipment (35% more than the previous week, 14% more than the average of nearly four weeks). Since late June, according to some international cotton traders, or by the implementation of the new national standard of cotton packaging in April 1st, Chinese textile enterprises are worried that they will not be able to sell their products because of the unqualified cotton packages. At the moment, the international cotton price has dropped to the competitive advantage of China's national reserves. However, the textile companies are still cautious when they wait for the coming of the new year. In the short term, international cotton prices will continue to decline.

Domestic cotton prices will remain weak. This week, China's HSBC manufacturing PMI in June was 50.7, up 1.3 percentage points from the previous month. In June, China's official manufacturing PMI was 51, the highest in December last year, up 0.2 percentage points from the previous month. Fundamentally speaking, textile enterprises have entered the traditional off-season at present. Due to a series of factors, such as the quality of raw materials, difficulties in recruitment and tight funds, some textile enterprises stop production and limit production. Within a short period of time, domestic cotton prices remain weak.