Worried About Demand, Cotton Prices Continue To Fall.

ICE cotton futures fell on Monday. The most active May contract fell 0.72 cents to 62.25 cents.

Investors' worries about demand put pressure on cotton prices. Sales figures released last week showed a net decrease in weekly net sales.

A large number of cotton orders have been cancelled, and investors are worried that the cancellation of orders may continue. This will put pressure on the cotton market, which will continue to affect the cotton market this week. In addition, the strong US dollar will also put pressure on cotton prices.

On Tuesday, the US Department of agriculture will publish monthly supply and demand reports, and the market will focus on the report and look for a trading guide.

ICE cotton futures contract fell for eight consecutive trading days in May, the lowest intraday drop to 62.05 cents, the market continued to fall, the trend is weak.

Zheng cotton futures 1505 month contract low Monday low, down 50 yuan, closed at 13110 yuan, clinch a deal 135 thousand hands, hold positions 223 thousand hands.

Spot, China

Price index 3128B cotton reported at 13475 points, down 3 points, spot remained stable, after the holiday inquiry increased the number of goods, spot market activity increased, while the downstream market turnover was light, showing cautious, market rumors.

The regiment gave preferential treatment of 300-500 yuan / ton to major customers and large single pactions. The impact on Zheng cotton futures was obvious. The price had already seen a sharp decline. The decline was narrowing recently, but the trend is still relatively weak. The market is waiting for the news to be recognized and the cotton continues to fall, which also has a certain negative impact on the country.

Zheng cotton futures contract continued downward trend in 1505 months, below the short-term support in the vicinity of 13000, concerned about the performance in this vicinity.

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At present, with the rapid increase of labor costs in China, manufacturing enterprises, especially labor-intensive enterprises such as textiles and electronics, have significantly increased their production costs. However, due to overcapacity in domestic industries and the rise of manufacturing industries in Southeast Asia, the price of finished products in China is difficult to upgrade.

In the case of constantly squeezing the profit margins of enterprises, the task of pformation and upgrading is extremely urgent.

Through large-scale technological pformation and equipment renewal, we can improve production efficiency and reduce labor cost.

In recent years, the cost of financing has been high. It has become an increasingly heavy burden on manufacturing enterprises, which has seriously restricted the development of enterprises.

In view of the problems faced by enterprises, it is suggested that the following measures should be taken to improve the financing cost of enterprises and effectively alleviate the problem of high financing cost.

First, the government should strengthen supervision over the banking industry, standardize and standardize the charging standards of banking related enterprises, and strengthen the supervision of various financial innovations of banks.

We should supervise the banking industry to take measures to reduce the financing cost and financing cost of enterprises, limit the upward floating range of the real interest rates of bank loans, reduce the fees for intermediate fees and cancel the guarantee, and so on.

The two is to further reduce the interest rate difference between bank deposits and loans.

To relax the access conditions, allow private capital to initiate small commercial banks with various shareholding systems, promote private finance to become an integral part of the multi-level financing system, reduce the price of funds through competition, expand the investment channels of private hot money, and guide hot money to return to the real economy.

Three, we should strengthen the function of banks to support enterprises and service enterprises, and maximize the benefits to enterprises and avoid excessive profits with enterprises.

The banking industry itself needs to further reduce operating costs, learn the operation mode of foreign banks, and create new means of profit.