The Quality Of New Cotton Has Become The Most Concerned Issue In Cotton Market.

In September 2015, the purchasing managers index of China's cotton textile industry was 42%, down 6.6 percentage points from the previous month, and then slipped again after a brief recovery last month.

Among them, the new orders index has dropped significantly, production and start-up index fluctuated slightly, cotton yarn inventory index has risen sharply, and cotton inventory index has also risen.

The overall production and marketing situation of the industry is still showing signs of weakness.

"Cotton is still weak in terms of fundamentals. The decline of cotton spinning PMI shows that demand is still weak. Overnight, the United States and cotton also follow the periphery, and the overall weakness of Zheng cotton is still hard to change."

Wang Yuhong said.

Since October 16th, after the breakdown of 12000 yuan / ton pass, the 1601 main contract of zhengmian futures contract has been successfully pursued, with a minimum of 11810 yuan / ton and a slight rebound thereafter.

Analysts pointed out that the new year seed cotton market, but poor quality, resulting in slow progress in the acquisition, the market is light trading, the market is difficult to sustain.

"Xinjiang cotton goes on sale faster than last year, and its length and horse value index are worse than last year.

Chen cotton is better than new cotton in terms of its length and horse value.

New cotton sales are not smooth, Zheng cotton fell under pressure, creating a new low.

Yangtze futures analyst Huang Shanghai said.

According to the state

The market monitoring system showed that the new cotton picking progress in the 14 provinces and autonomous regions in October 16, 2015 was 51.3%, an increase of 6.2 percentage points compared with the same period in the past year, which was 5.4 percentage points lower than that in the past four years. The picking rate in the mainland was 58.4%, the picking rate in Xinjiang was 48.6%, and the national sales rate was 66.1%, an increase of 9.8 percentage points compared with the same period last year, which was increased by a percentage point over the normal years in the past years, with the mainland selling rate being the sum of Xinjiang and the selling rate of the city in the city in the year of 87.

Galaxy futures analyst Liu Qiannan pointed out that

Quality has become the focus.

The short term has a great impact on the high count yarn in spinning and weaving. The quality of cotton has been improved in the middle stage of the new listing, but the horse value has decreased slightly, but the length is hard.

The machine picked seed cotton began to appear on the market. The cotton mill expected the acquisition price of machine picked cotton at 4.5-4.8 yuan / kg. The centralized listing will suppress the market price, and the cotton mill reflects the new cotton sales are not smooth.

According to its introduction, at present, the quality of domestic cotton has declined sharply, and ring spinning enterprises are running around in search of suitable cotton raw materials, and the air spinning enterprises seem to be sitting on Diaoyutai.

In the face of this year, cotton prices are likely to aggravate polarization.

Air spinning products are mainly low and coarse yarn. They require lower cotton grade, length, horse value, impurities, three silk and defects. They can use cotton and head hair with cotton under four orders, sterile seed, cotton, cotton, cotton and low horse cotton.

The price of low quality cotton will be further reduced by market pressure, which will help reduce the cost of raw materials and improve the profit of the spinning enterprises.

"Seed cotton is on sale in the new year, but the acquisition process is slow.

On the one hand, cotton spinning enterprises have difficulty in increasing procurement and prudent purchase, and this year's cotton quality decline has increased the wait-and-see psychology of cotton ginning plants and traders to some extent. On the other hand, farmers' picking has not yet been completed in large areas, coupled with the reluctance to sell, resulting in the current market slack, slow progress in acquisitions, and the market is hard to sustain.

At present, the purchase price of seed cotton is generally 5.5-6 yuan / ton, and the cost of cotton lint is 11500-12500 yuan / ton.

At present, the price of lint in the market is around 13000 yuan / ton, and there is still room for downfall, which is a drag on the futures market.

Founder futures analyst Wang Yuhong said.