[Cotton Market Observation] Sell And Purchase Cotton By Spot Sale

In October 15th, the price of spot MA1411 was around 14300 yuan / ton. According to the recent acquisition cost of cotton rolling enterprises published by China cotton information network, it has reached 6 yuan / kg, and the price of lint (3128) to the warehouse is 14500 yuan / ton (fixed weight).

As the spot listing can be delivered in Xinjiang, therefore, the MA1411 paction price is 14700 yuan / ton (including the cost of capital and warehousing, paction costs, etc.), Xinjiang processing enterprises can directly sell through spot; 14500 yuan / ton, textile enterprises can buy MA1411, save 1 months of capital costs.

The spot market is relatively stable. In the short term, textile enterprises need centralized procurement. The processing progress and procurement progress of the processing enterprises can be kept in balance, providing a stable market environment for processing enterprises and textile enterprises through spot listing and sales.

1. After the seller has sold the goods on spot, the seller will make an appointment for warehousing and inspection according to the process, and deliver the goods according to the delivery conditions.

What needs prompt is that the spot listing only accepts hand picking cotton, and is only limited to 10 delivery warehouses in Xinjiang.

Two, after buying the spot listing, the buyer may pay attention to the spot delivery and advance delivery information in the trading market, and participate in the advance delivery.

In the Xinjiang warehouse delivery, the buyer has to pay 60 yuan / ton contract fee, and the paction market is responsible for loading the train within 30 days.

If the buyer rushing to pport in November, he can choose the highway to go out of the border.

In addition, the paction market can provide financing services for the buyer, and the cost of capital is 5.6% per annualized rate.

According to "spot cost + pportation, warehousing,"

And the theory of "capital cost = far month price", roughly estimated that the lowest price the seller can sell in MA1501 should be "14500+50+150+300=15000 yuan / ton", but in October 15th, the price of MA1501 was 13700 yuan / ton, and the premium was 1300 yuan / ton.

The reason for this is that the buyers and sellers in the cotton market are bearish on the price of the far moon. The reason is that after years of temporary purchasing and storage policy, the overall supply of 2014/15 cotton market in the year to year exceeds demand, which is reflected in the price, that is, the farther from the present, the lower the price.

Above, only as a reminder, processing enterprises and textile enterprises can pay close attention to spot listing prices and find market opportunities.

In January 2015, the price of cotton was not much related to the current processing and procurement. However, both processing enterprises and textile enterprises had their own cost accounting. The above examples were only roughly estimated. According to the price of 14500 yuan / ton, it is the current market equilibrium point. At this price, processing enterprises and textile enterprises are also profitable.