Cotton Market: The Domestic Market Has Formed A Clear Divergence.

　　 Zheng cotton The main 1505 contract rose slightly, up 60 yuan / ton compared with the previous day, and the turnover volume changed little. However, futures fell to seven and a half weeks on Wednesday, and the contract fell 1.17 cents to 58.98 yuan / ton in March. The strong trend of the domestic market and the formation of the external market are more obvious differences.

For now, cotton The most profitable factors of futures are mainly from two aspects: first, the sowing area of cotton and Chinese cotton has been greatly reduced; two, the government will support cotton spinning enterprises. In this regard, cotton industry pointed out that in 2015, due to the subsidy effect and the substitution of limited crops, Xinjiang Cotton planting area decreased by 5% at most.

The reduction of cotton cultivation in the United States depends on the suitability of cultivated land and the economic benefits of soybean and Maize in the future. The falling prices of soybean and corn may lead to alternative planting. "The most likely reduction is cotton production in the mainland, but some of the cotton producing areas in the mainland are difficult to grow because of drought. The total cotton planting area in the mainland is reduced by about 50%."

Some analysts pointed out that although the domestic cotton price has experienced a sharp drop in 2014, the price difference between the cotton price and the international market has narrowed a lot, but the price advantage of imported cotton is still in existence, and its pressure on domestic cotton prices will not be eliminated for the time being. "The linkage between domestic and foreign cotton futures is likely to be further strengthened."

Related links:

In the last week (8-15 January), the number of long-distance merchants in the market has been decreasing, and the fabric purchased by local children's clothing enterprises has also been reduced.

Judging from the variety of market transactions, the volume of conventional cotton fabric has dropped significantly this week, but there is a sales of all cotton yarn card 63 "21*21108*58 card" in the market. The products are suitable for making casual wear and children's trousers. There is also a whole cotton grey cloth 47 "21*2190*50, volume of trade can be, dealer supply is tight." The sales volume of denim fabric market is very slow, and the price trend is barely smooth this week. But at present, the denim products listed in the market tend to be thin and varied in spring clothes, and there are plenty of sources of knitted denim and elastic denim market. There are more sporadic trades in cotton beds, and the local varieties market is popular, of which 104 inches 30*3068*68, the market is quite dynamic, and it is mainly suitable for making some quilt covers and pillowcases. Cotton corduroy Market volume continued to fall, but cotton corduroy specifications 63 "40 * 4077 * 177,21" still has sales volume; polyester cotton series of polyester cotton series inventory remained high, but the price trend is relatively strong, and the market polyester cotton thread, jacquard class is very popular with local children's clothing enterprises concern. The sales volume of the cotton cloth market is slow, and the price trend is rising steadily. Polyester and viscose grey fabrics have been on the market recently. Among them, a T/R fancy fabric market is showing strong momentum. The price trend of this product is still stable, mainly selling to Shaoxing market with trousers fabric. The yarn dyed cotton fabric market began to show itself, but there was hardly any turnover. It is expected that the sales volume of cotton cloth market will gradually decrease next week, and the price trend will be dominated by moderate adjustment.