New Cotton Quality Is Poor, Difficult To Sell, Spinning Enterprises Are Not Optimistic.

October 5-9, new cotton everywhere

As of October 9th, 247 thousand tons of new cotton had been checked in the country.

241 thousand tons, the listing progress is faster than last year, but the quality of new cotton is generally poor, short length, high horse value, it is not suitable to spin high count yarn, and sales difficulties are difficult.

Cotton mill orders are still small, sales pressure is high, prices are showing a drop, conventional varieties are in a state of loss.

Consumption power is insufficient.

After the US cotton bottom hit, the shock rose, and Zheng cotton fluctuated with the spot.

Sales of imported cotton were light, and prices continued to decline.

In October 9th, the B index of the national cotton price was 12842 yuan / ton, compared with the CF1601 contract of Zheng cotton futures, and the spot premium was 617 yuan (B-CF1601=12842-12225=617), expanding the chain ratio.

Futures.

Spot sales difficulties, futures bottom shock, after the opening of the long term, Zheng cotton can not rebound.

CF1601 closed at 12225 yuan / ton last Friday, down 45 yuan per ton, and its position decreased.

As of October 9th closing, the top 20 seats, more than 174919 single hand, 905 more than the previous week, 172793 empty hands, 1796 more than the previous week, 2126 hands long net, 891 fewer than the previous week.

Sales of new cotton are sluggish, and some acquisition funds are coming in to find opportunities for hedging.

Bao Bao duo did not set up a warehouse last week. The premium was 0 hands, and the sales kept 27541 hands, which was 2738 more than that of the previous week, reflecting the lack of confidence in the market.

As of October 9th, 88 registered warehouse receipts were not available, with no effective forecast, 66 fewer than the previous week, and 15 consecutive weeks of reduction. The warehouse receipts continued to flow out, reflecting the reduction of the resources of Chen cotton, and the new cotton has no registered resources.

The purchase price and sales situation of new cotton are still the key factors affecting the later stage of Zheng cotton.

Us disk: basically, lower prices promoted the sale of US cotton. The US Department of agriculture report showed that in September 25, 2015 -10 1, the US 2015/16 cotton export volume contracted for 46 thousand and 900 tons in September 25, 2015, a 76% increase over the previous week, and a significant increase over the previous four weeks. The data were good. Technically, the 60 cents / pound integer barrier was effective, and there was a rebound demand. The main contract in December was 61.61 cents / pound on the week, rising 122 points on the week, and returning to the 60 mark / pound integer pass.

This week is expected to continue to rebound, the latter part of the U. S. cotton is still dominated by a large range of shocks.

On the spot.

Chen cotton resources are increasingly scarce, mainly concentrated in the hands of the Corps, the Corps of machine competition, last week, the 3 trading day clinch a deal of 2659 tons, the paction increased significantly.

In the spot market, the resources of Chen cotton are decreasing. Due to the small quantity and good quality of new cotton, the turnover is active and the price is relatively stable.

Because of the coarse and short length of the new cotton, especially the southern Xinjiang, the main body is only 27mm. Under the compression of the imported yarn, the domestic cotton mill generally produces medium and fine yarn. The quality of the new cotton does not match the demand of the cotton mill, and the purchase is very few.

Sales of new cotton have been blocked, and the price of the purchase has been cut down, especially in the southern Xinjiang.

Xinjiang Chen cotton inland sale price 3128B level quoted price 13500-13700 yuan / ton, 2129 level 13800-1390 yuan / ton.

New cotton 3128C Xinjiang delivery price 13100-13300 yuan / ton, 3127C2 level 12700-12900 yuan / ton, real estate cotton 12600-13200 yuan / ton.

The sale of imported cotton is dismal. The US cotton SM1-1/8 quotes 13900-14500 yuan / ton, Ukrainian cotton 13200-13500 yuan / ton, India 13600-13800 yuan / ton, Australia cotton SM1-5/32 quoted 15800-16200 yuan / ton.

Long staple cotton, the purchase price of new cotton 8-8.2 yuan / kg, the quality is not as good as last year, new cotton rare sales, Chen cotton quotations generally reduced, the 137 class pactions are mostly concentrated 26000-26500 yuan / ton.

The price of imported Pima cotton under the pressure of Xinjiang long staple cotton was also significantly reduced. 21-2-48 quoted 26800-27500 yuan / ton, and there was still room for bargaining according to quantity.

Acquisition of new cotton.

The listing rate is faster than last year, and the quality is worse than last year, and the proportion of Xinjiang cotton production is further improved.

As of October 9th, 467 enterprises participated in public inspection enterprises, an increase of 350 compared with the same period last year. The number of public inspection was 247 thousand tons, an increase of 218 thousand tons compared with the same period last year, of which 241 thousand tons of public inspection in Xinjiang increased by 227 thousand tons compared with the same period last year.

The average length is 27.1 millimeters, down 0.57 millimeters compared with the same period.

The horse value is generally relatively coarse, Xinjiang Cotton Horse value, A+B ratio 14%, last year 99%.

Xinjiang accounted for 91.1% of the total number of public inspection, which is 80.9% higher than that of last year.

There are 1892 enterprises to be reported for inspection, 138 less than last year, of which 837 in Xinjiang increased by 4, and 1055 in the mainland reduced by 142.

New cotton purchase price Xinjiang 5.5-5.9 yuan / kg, mainland 5.9-6.1 yuan / kg, under the pressure of new cotton sales, the purchase price has stabilized, especially the short length of seed cotton decreased significantly, some processing plants have begun to limit or reject low-quality seed cotton.

Cotton distribution.

New cotton has been listed, Xinjiang has 241 thousand tons of public inspection, only 14 thousand tons in the same period last year, the progress is faster than last year.

The mainland has 6 thousand tons of public inspection, compared with 15 thousand tons a year ago, slower than last year.

From the public inspection data, there are obvious defects in the quality of Xinjiang and the mainland, mainly in the short length and high horse value, which do not match the requirements of the cotton mill. The structural contradiction between supply and demand is outstanding. On the one hand, the new cotton is difficult to sell. On the other hand, the cotton mill can not find the right cotton, and some enterprises that are not well prepared can only find a relatively good cotton in Chen cotton.

Some companies are looking for cotton and cotton in India for matching purposes.

From the data of public inspection, although the issue of horse value and length will be improved with the advent of cotton in the middle and later stages, it will be worse than last year, with a length of 29mm and a horse value of 3.5-4.5. The proportion of cotton with a strength greater than 28 will be very small, and it will not exceed 30%.

Operation suggestion: cotton quality will decrease as a whole this year, and the difference will widen later. The difference between spot length and horse value may be larger than that of futures. It is concerned about the variety of registered warehouse receipt. CF1601 has a narrow trend in recent interval, and there is no obvious trend. Buyout enterprises can participate in hedging in time and prevent price risk.