Xinjiang Corps Cotton Sales Pressure Is Huge

Judging from cotton consumption in recent years, the March after the Spring Festival should be a gradual increase in the procurement of textile industry in the lower reaches, which should have a positive effect on cotton prices. However, after the Spring Festival this year, cotton spot purchases showed a relatively cool situation, cotton futures also experienced several days of oscillation, and there was a continuous downward trend (since March, the 1509 contract of zhengmian main force has dropped to 700 points).

The reason is that the supply of cotton is relatively abundant, and the downstream purchasing is not flourishing. The direction of policy also affects the further direction of cotton market.

It is understood that the Xinjiang cotton Corps processed more than 1 million 600 thousand tons of new cotton in 2014. On the eve of the Spring Festival, the Xinjiang Corps official said that the sale of cotton in the first quarter was more than half. However, as of the beginning of March, the sales rate of the Xinjiang regiment was only 1/4, which was a sharp increase in cotton sales pressure.

Under heavy pressure, the Xinjiang regiment Cotton sales The strategy changed. In March 3rd, the Xinjiang regiment reduced the minimum selling price of cotton, and there would be a certain price discount for the purchase of large orders. The news came out. Zheng cotton Futures should fall and prices will continue to fall. There is no doubt that the sudden drop in price of the Xinjiang regiment is a heavy blow to the domestic cotton market, and the cotton price in Xinjiang will also decline in a certain range.

Xinjiang's cotton output accounts for domestic production. Total cotton yield More than 2/3, and there are not many cotton in the mainland, so the price of cotton in Xinjiang directly determines the price trend of domestic cotton market.

As a result, the lowest sales price of machine picked cotton in Xinjiang Corps was 13500 yuan / ton before, which formed a high price support for domestic cotton. "The price of the corps" is also a confidence expression for the market. Once the sale is announced, it will cause a chain reaction. Especially when the downstream consumption is not strong, it is more likely that the cotton will become cheaper and cheaper. Therefore, within a certain period of time, domestic cotton prices will move downward and may find a new balance.

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Because the textile enterprises have a certain amount of raw material inventory before the Spring Festival, they usually support a period of time after the Spring Festival. This year's downstream factories are much later than before. Many factories start off after the Lantern Festival.

The author visited Binzhou, Dezhou and other textile enterprises to understand that after the Spring Festival, the procurement started slowly, and the orders were mainly small ones. There was no purchase of large orders. The shortage of downstream orders also directly affects the enthusiasm of textile enterprises to purchase cotton. It is understood that although many cotton merchants have the idea of raising prices after the Spring Festival, they have no choice but to face the situation that there is no market price. The cotton price reduction of the Xinjiang regiment is adding insult to injury to the cotton market. Comparatively speaking, the spot price of cotton in the mainland is more stable, and the price of cotton in Xinjiang is different.