Shandong: Cotton Spot In Low Position Stabilize Cotton Enterprises And Textile Enterprises Differ Greatly

Recently,

Cotton shows signs of stabilization in most cotton regions, but the market is still looking down on cotton market, which brings pessimism to the future market.

1, the purchase of seed cotton is slightly stable, cotton enterprises, cotton farmers are still stalemate

In November 18th, Heze Juye cotton seed cotton to the factory price 3.30 yuan / jin (lint 40%, moisture 10%), unchanged from yesterday.

Type 400 cotton enterprises are currently buying at 3-7 Jin Jin, more than 100 thousand catties.

This is in sharp contrast to last year's harvest of several hundred thousand jin.

Jining type 400 cotton seed cotton to factory price 3.10-3.15 yuan / Jin, relatively flat yesterday; some 200 type cotton enterprises are also competing with the 400 cotton enterprises on the same stage, at present 200 type cotton enterprises slightly prevail, because of its small scale, low cost and large room for maneuver.

Others such as Dezhou, Liaocheng and other cotton areas to the factory price of seed cotton generally 3.10-3.25 yuan / Jin, mostly flat.

Market feedback, cotton farmers and cotton enterprises stalemate unabated, on the one hand is cotton farmers think cotton price is too low, reluctant to sell mentality is strong; on the other hand, cotton processing seed cotton no profit or even loss, there is a plan to continue to lower cotton prices.

If the two armies face each other, they will not let go.

2, spot stabilization in the low position, cotton enterprises, spinning enterprises differ greatly.

Last week, Shandong Wei Qiao continued to sell naughty cotton to the factory price of 200 yuan / ton, of which 3128 level 13800 yuan / ton, 2128 class 14100 yuan / ton.

Leading enterprises took the lead, and "little brothers" were effective in preventing them. Therefore, the price of lint cotton in Shandong last week was generally reduced by 200-300 yuan / ton.

Entering this week, the price of lint cotton has gradually stabilized. Among them, the sales price of 3 grade white cotton produced by the 400 cotton enterprises is 13700-14000 yuan / ton, 4 grade 13400-13500 yuan / ton, and the 200 cotton type small bag cotton price is more chaotic, mainly due to its cotton mixed grade mix and so on, but the mainstream price is slightly higher than the cotton balding cotton by 100-150 yuan / ton.

The reasons are: first, the cost of pportation and loading and unloading is lower than that of cotton bales. Two, some textile enterprises recognize "small cotton", plus the old tradition of use, and all of them are relatively popular.

According to feedback from some cotton enterprises in Dezhou and Liaocheng, cotton ginning is basically in a state of no profits or losses, and cotton enterprises have a strong desire to set prices. Textile enterprises also want to lower the price of lint because of their weaker cotton yarn.

3, the whole cotton outside the port is weak and individual cotton is out of stock.

Because

The pace of harvest in the exporting countries accelerated, and the US Department of agriculture raised the global cotton inventory estimate at the end of the 2014/15 crop year, which led to 4.8% decline in cotton last week, the biggest weekly decline in 2 months.

Affected by this, Qingdao port cotton, cotton and Mexico cotton prices fluctuated, of which India cotton S-61-5/32 yuan mainstream offer 14400-14500 yuan / ton, Australia cotton SM1-5/32 RMB quoted 17000-17300 yuan / ton, Mexico cotton GM1-1/8 contains tax 15200 yuan / ton, the price has 100-200 yuan / ton fall, the overall goods are not fast.

But the US cotton market is slightly better, more popular, the price is rising, but most traders have already broken the goods, of which the SM class price is 16500-16800 yuan / ton, basically the price has no market.

The market believes that due to strict and tight quotas, China is still expected to have room for foreign trade. Some traders and foreign businessmen also have a wait-and-see attitude.

4, cottonseed market temporarily stable, market trading is light.

As of November 18th, the mainstream price of cotton seed in Xiajin was 1.13-1.14 yuan / kg (12% of seed oil content and 12% of moisture content), and the price of Heze and Binzhou to 1.10-1.11 yuan / Jin was flat compared with yesterday.

According to the oil factory, since the middle of November, cottonseed is in a weak state.

However, although it has reached the peak season of cottonseed marketing, it is in Binzhou, Dezhou, Liaocheng and so on.

In other places, it is still hard to see the phenomenon of cottonseed "piling up mountain" in previous years. First, cotton enterprises are afraid to leave seeds and insist on processing along with sales. Two, cotton seed output is greatly reduced this year and cotton processing is slower, so it is felt that there is no seed in the world.

In addition, this year Shandong cotton oil business started at about 60%, and only 30% in some regions, which is obviously not as good as 80% last year.

Many oil factories in Xiajin complain: first, processing losses are unavoidable. Most of the losses are currently 30-40 yuan / ton. Some small factories are facing a crisis of closure. The two is that cotton pulp and cotton oil market has not improved significantly. Due to the recent fluctuation of soybean meal and soybean oil, the pessimistic atmosphere of cottonseed oil and cottonseed meal has been triggered, and prices are still falling slightly.

In short, although the price of cotton market in Shandong is "flat" recently, the pessimistic mentality of all parties has not been reduced, or has become another force to continue to suppress the market.