National Storage Cotton Market Will Be "Blood Spattered Five Steps"

The market is not calm at the end of the year.

This kind of tranquil comes mainly from various expectations of the market for the national cotton storage.

When does the national cotton store go out, how does the price affect the stock market? It has become the focus of attention.

A few friends in the industry gathered together to talk about the state store cotton store. A friend said that the national storage cotton market will be "blood spattered five steps".

According to the national cotton market monitoring system data, the whole country in 2015

5 million 216 thousand tons, as of January 29th, the total sales of 2 million 393 thousand tons of lint, that is to say, 2015/16 cotton business inventories at least 2 million 823 thousand tons (production minus sales), the market is not short of cotton.

Beginning in mid January, the cotton quota notice has been sent to enterprises. If the national cotton store is sold out, the market will be competing for victory.

"The outgoing time may be earlier than that of the industry."

The friend said that the national economic work conference held in the past few years has clearly identified five major tasks in 2016: inventory, capacity, leverage, cost reduction and compensation.

Today, the national storage cotton inventory of more than 1100 tons, the first to take inventory, and downstream cotton enterprises also think that the national cotton store out of storage in time is not too early, the sooner the boots landing, the more conducive to textile enterprises in the overall layout of raw materials.

The other is the price problem that the market is generally concerned about.

The current market discussion of the national cotton prices mainly revolves around the following two situations: first, some enterprises believe that the price will be very low, which is mainly from the viewpoint of cotton enterprises and with wishful thinking. Two, there are some market participants who believe that the average price of the Cotlook A index and the domestic spot price will be set.

They will quickly adjust to the Cotlook A index.

In fact, this price determination system is too idealistic.

Finally, the state stores cotton.

Problem.

In 2015, "good cotton supply is in short supply and bad cotton flooding into worries" has become a consensus in the market. After the Spring Festival, textile mills are expected to have strong demand for high-quality cotton, while the "mainland goods" are not so urgent.

A market person once said that in 2016, the key indicators for selecting cotton in textile enterprises were the length of wool, horse value, "three silk" and strength.

In the 2015 year when new cotton is difficult to meet the needs of enterprises, national cotton reserves will become a useful supplement to the market.

Generally speaking, the time of storage of national cotton stores may be earlier, and the price may be lower. This is more advantageous than the disadvantages for textile enterprises, but for the cotton enterprises and cotton traders still in stock, they are "fighting to the flesh, knife and knife to see the blood".

However, lower cotton prices will be conducive to the integration of domestic and foreign cotton prices, which is conducive to the relief of financial funds, and is beneficial to the long-term development of cotton industry. Perhaps this is the throes of reform.