Cotton Output Is Basically Settled In The New Year.

In the early years of 2015/2016, Zheng cotton basically showed a gradual decline in the price of new cotton as it went on the market.

The reason is that even if we do not consider the national cotton reserves, the supply gap of new cotton is not large. At present, cotton consumption is likely to decline.

Therefore, in the early period of 2015/2016 supply is not tight, Zheng cotton price is very difficult to pick up, high selling short selling is relatively advantageous, this is also the time that the cotton ginning factory and traders are using the futures tools to preserve value.

At the same time, the decline in cotton prices will bring cheap raw materials to the lower reaches while also boosting demand. In addition, if time goes on, if cotton consumption can reach a certain level, the late 2015/2016 should pay attention to whether there will be a new cotton supply gap. If there is no supply gap, the cotton textile industry will still fall after the mid term rebound. The decline can be concerned about the cotton farmers' acceptance of seed cotton prices and the internal and external cotton price ratio; if there is a supply gap, Zheng cotton will have a decent rebound, and the rebound will also be subject to the impact of the policy of throwing and storing.

In short, under the condition of supply and inventory determination, consumption can decide the stage of cotton market later.

According to the author's understanding, the output of new cotton in different cotton producing areas in Xinjiang is uneven. Although it is affected by the high temperature in July, the output of new cotton in Xinjiang is roughly 10% lower than that of last year, and the total output of new cotton is 4 million tons.

In addition, the industry believes that the mainland cotton because of planting area decreased significantly compared with last year, the total output fell more.

The total output of cotton in the new year is estimated to be 1 million 200 thousand tons according to the relevant market data.

Quantity material continued to decline to 1 million 200 thousand tons.

According to the cotton association data adjustment estimate, the initial inventory of cotton is 800 thousand tons, and if the level of the previous year is taken into account, the cotton consumption in the new year will be about 7 million 400 thousand tons.

Therefore, from the perspective of supply and demand, cotton may have a supply gap of about 200 thousand tons, but the overall supply gap is not large.

In addition, for the prediction of cotton consumption, with the changes in the purchasing situation of textile enterprises, orders were improved from 3 to April this year, and textile enterprises expected to increase consumption in the new year. Orders from 7 to August were relatively poor, and textile enterprises expected to reduce consumption in the new year.

It is understood that the current textile enterprises orders situation is still no obvious improvement, in the context of the slow economic recovery, the traditional textile industry is also experiencing pformation and upgrading of the plight.

Therefore, the increase or decrease of cotton directly determines the contradiction between supply and demand, and directly affects the rise and fall of cotton prices.

In the past few years, the state was

There are frequent moves, especially in the past 3 years.

Since last year, the state has abandoned the policy of purchasing and storage.

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Such a change indicates that the government will gradually withdraw from its secondary position in the price regulation of cotton and let the market supply and demand decide the price.

In this way, we should pay more attention to the supply and demand of the market in analyzing cotton prices.

Although the purchase and storage stopped, but tens of millions of tons of state-owned cotton stocks are still eyeing, this is also the cotton industry's lingering crisis, because this quantity is enough for domestic textile enterprises to use for a year and a half.

Therefore, the policy of dumping and storage still affects the market's view of cotton price, or rather, it brings unlimited pressure to the market, which brings heavy burden to cotton prices.