Outlook For New Cotton Market In China: Growing Well

Affected by the expected impact of the reserve cotton rotation, cotton prices continued to sell, and domestic lint prices continued to fall. The contradiction between oversupply of cotton and cotton was becoming increasingly prominent. The demand for high-grade cotton was higher than that of low grade cotton, and the grade difference was widened.

Because starting price It is very close to the current international cotton price, and the number of unsold cotton in this year is still large. Even if only 1 million tons of cotton are sold, it is difficult to sell all of them.

Though most of the northwest since June Cotton region Light and heat are not enough, and the time of bud emergence is relatively late. But the weather is better in recent days, and the emergence rate of cotton is significantly improved, and the overall growth of cotton is better.

According to the situation in Xinjiang, Xinjiang The overall growth of cotton is good. Although the planting area has decreased greatly, the yield per unit area is better than expected, and the time to market is likely to advance.

In addition, the the Yellow River River Basin and the Yangtze River Basin suffered from high temperature and drought and Meiyu weather before, but bad weather had limited impact on cotton growth. Recently, precipitation has increased and cotton moisture has improved significantly. At the same time, since the sowing, the comprehensive climate suitability index of cotton area is "suitable", and the extent of disease and insect pest is lighter than that of last year. According to the current growth indicators, if the weather is normal in August, cotton in the the Yellow River river basin is expected to have a bumper harvest. The new flowers are expected to be picked in late August and early September.

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Cotton demand is sluggish and grade quality is low, and with the advent of new cotton listing, cotton enterprises are eager to raise funds for the purchase of funds, and spot cotton market continues to fall down. By the end of the week, the 328B cotton price index was 13138 yuan, down 0.2% from last week and 0.9% in July. It is reported that the recent Anhui east to the local level 3 lint quotes 13500 yuan / ton, 3 times 12800 yuan / ton, 4 level good 12500 yuan / ton, 4 times 12300 yuan / ton. Zheng cotton futures trading is still sluggish, prices continued to fall slightly, the main contract weekend settlement price of 12673 yuan, down 0.4% compared with last week, in July, a total decline of 537 yuan, or 4.1%.

Viscose staple fiber prices remained stable, cotton mill multi dimensional quantitative demand for replenishment. Maintaining a certain amount of rigid demand replenishment along the downstream, and the stock of viscose industry is still on the low side. Although the viscose staple fiber started to pick up this week, viscose staple fiber prices were still strong, and the middle end offered 13300-13500 yuan / ton, and the actual turnover was 13200-13300 yuan / ton. The high-end offer price is 13600 yuan / ton, and the focus of the transaction is 13500-13600 yuan / ton. Jiangsu siro spinning cotton yarn has some tentative pull up. It is expected that the viscose staple fiber will be stable in the later stage.

Last week, polyester staple fiber was arranged sideways, and the quotations from manufacturers were basically stable. The mainstream of Jiangsu and Zhejiang 1.4D direct spinning polyester staple price is 6950-7050 yuan / ton, and there are many concessions in the negotiations. With the replenishment of raw materials and periodic replenishment, the weekend's center of gravity rose slightly, and the manufacturers quoted a price increase of more than 100 yuan. The mainstream of Jiangsu and Zhejiang 1.4D direct spinning polyester staple price was 7050-7150 yuan / ton, and Fujian was 6750-6900 yuan / ton, and Shandong and Hebei were 7050-7150 yuan / ton. In the later stage, we still need to pay attention to crude oil, PTA futures and polyester and downstream cotton mill maintenance.