Reserve Cotton Production Is Expected To Increase Cotton Price Low Consolidation

4-10 March 2016, China

Price declines deepened, representing countries with 2129B cotton prices in the mainland.

The average price of A index (CNCotton A) is 12684 yuan / ton, down 136 yuan / ton compared with last week, and the average price of cotton price B index (CNCotton B) on behalf of the 3128B grade cotton price in the mainland is 12104 yuan / ton, down 84 yuan / ton.

As the weather gets warmer, cotton farmers begin to prepare for spring ploughing.

3 in the first half of the month,

At present, some cotton growers in the southern Xinjiang have begun to lay the film. They are expected to be sown before March 20th, but the large-scale planting can only begin in early April.

Spring ploughing is relatively late in the mainland, and is expected to start in early April.

It is understood that at present, the two subsidy of cotton in Xinjiang has been allocated to all parts of the country. Some areas have entered the stage of collecting cotton bills for cotton growers, and are expected to be sent to cotton growers in March 20th at the latest.

Following the mainland's Shandong and Tianjin, Hebei's "Cotton Subsidy implementation plan for 2015" has also been issued recently. The average amount of subsidy is 201 yuan, which is 37 yuan higher than that of last year.

In the week, the price of the lint spot market tended to be stable, but the turnover was not heavy.

The 3128 grade lint price is priced at 12300 yuan / ton, and the 4128 grade is 12000 yuan / ton.

Recently, the market is expected to increase the output of cotton reserves, and textile enterprises are cautious in entering the market.

Yarn orders are mainly small and short.

There is an increase in enquiry at the back weaving factory, and there is a concession in price for spinning enterprises in order to get orders.

Judging from the variety of pactions, the demand for pure cotton yarn and low quality air spinning is weak, and the sales volume and price of polyester viscose yarn and cotton yarn have been steadily rising.

According to the latest statistics from the General Administration of customs, the export volume of textiles and garments in China in February 2016 was 15 billion 658 million US dollars, down 27.76% from the same period last year.

Among them, exports of textiles (including textile yarns, fabrics and articles) amounted to US $6 billion 83 million, down 27.56% from the same period last year.

In the futures market, the reserve cotton wheel is coming soon. The textile enterprises are still cautious in purchasing cotton, and the fundamentals have not changed significantly. It is expected that the cotton oscillation will run weak and the stage rebound will not be ruled out.

ICE futures return to the downstream channel after three successive days. The market continues to wait for the news of China's cotton reserves. It is expected that cotton prices will be consolidated before the policy is clear.