The Xinjiang Cotton Market Continues To Bear Pressure And Temporarily "Decline"

At present, the trend of polarization of cotton processing and operating enterprises is becoming more and more obvious.

Some cotton enterprises that raise their own funds or purchase their own funds have stepped up the price reduction and dumping efforts, leading to the continued pressure on the domestic cotton market.

In mid January, the paction price of Xinjiang cotton was reduced by 100-200 yuan / ton compared with the end of December, while the real estate cotton was reduced by 200-300 yuan / ton.

Some rely on loans from agricultural development bank, credit union and other commercial banks.

Most of them chose "stick to it". The price of high quality lint such as 2128B, 3128B grade was strong, and even to the cotton textile factories and middlemen in the mainland, they put forward "if you are the one", and 2127C2, 3127C2 grade and other low length and high horse value.

Symbolically lowered by 50-100 yuan / ton, the new Xinjiang cotton market "coy" and "sell" coexist, "gambling up" and "bearish" are in.

13-14 January,

Bachu's platform 2128B class (3128B) and 2128C2 (3128C2) public inspection gross weight pick up price is 12900-13000 yuan / ton and 12700-12800 yuan / ton respectively, while the 2126C2 (3126C2) quotation is reduced to 12000-12200 yuan / ton, the difference between the high and low grade is widened again.

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"Raw materials and products de Stocking" is the most important task of textile, fabric and garment manufacturers in the past month. For most downstream businesses, the difficulty of returning funds is quite large.

In addition, the cotton manufacturers' expectations of the state departments concerned to restart the auction of national cotton stores in March were strong, especially for small and medium sized raw materials inventories of C40S and below, which mostly dropped to about 10 days.

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The domestic cotton market is still weak, the market is still cold, cotton prices are weak and downward. In order to make the inventory backlog as soon as possible before the festival, some cotton processing factories and cotton producers have lowered their cotton prices. Nevertheless, the textile enterprises are constrained by the financial constraints of the company, and the purchase intention is not strong. Only a few textile enterprises replenish their stock and purchase a small quantity.

At the end of the year, both cotton farmers and cotton enterprises are calculating the benefits of a year. Cotton enterprises are at a high cost due to labor, electricity and pportation, together with the monthly interest of bank loans at the end of the year. Most of the cotton enterprises are in a state of deficit, and only a small part of the cotton enterprises have a slight profit. Because of the continuous fall in cotton prices this year, the cost of cotton planting has been increasing continuously in recent years, so cotton farmers have little to do after removing all the costs.

In the week, the main yarn price continued to decline slightly, the textile industry has not changed the overall market, conventional yarn production basically maintained last month level, but the high count yarn has not received new orders in 2016, so some manufacturers have shut down the production of some conventional yarn and high count yarn.

According to the latest survey of China cotton net, half of the enterprises in the vicinity are ready to take a vacation in early February, and some enterprises are also preparing to extend their holidays.

Import yarn, the recent downturn in the external yarn market, some in the actual paction process has cut prices, sales have increased.

In recent years, Zheng cotton oscillation operation, the September contract fell sharply after a sharp decline in recent days, the current market focus is focused on the storage cotton rotation time.

A comprehensive analysis shows that there is a gap in supply and demand of cotton this year. However, the de stocking of large quantities of cotton reserves and fierce competition in Southeast Asia will suppress cotton price trend for a long time. It is estimated that Zheng cotton futures will run weak and oscillate.