Why Did Xinjiang Cotton Become Quiet?

On the 13-14 th of March, the gross price quotations of 2128B2 and 2128C2 grade lint for public inspection of warehouses in Henan, Hubei and Jiangsu were 12400-12600 yuan / ton, 12100-12300 yuan / ton respectively.

It is expected that the national cotton auction policy will be announced in mid March. After the last week's deep fall, Zhengzhou and electronic matching disk entered the consolidation and waiting period, and the spot market of cotton became quiet again.

Some textile enterprises reflected that although the cotton purchasing personnel were sent to Xinjiang after the holiday, they planned to purchase high-quality Southern Xinjiang hand picked cotton and Northern Xinjiang cotton picking machine. However, the supervised inventory in the territory was mainly based on low breaking strength (28.5CN or below 28CN), large horse (5), short length (28mm and below) cotton flowers, and there was no way to match the 40S and above count cotton yarn, so we could only pay attention to Xinjiang cotton which was moved to the mainland.

Although the index of horse strength and strength is obviously stronger than that of local cotton, the khcd decides to take delivery.

It is generally 12400-12600 yuan / ton (3128B class), higher than the southern Xinjiang hand picking cotton 3128B class offer price of 500 yuan / ton, cotton mill digestion is more difficult.

Recently, commodities rebounded strongly (the Fed raised interest rates or postponed to June) and ICE predicted global 2016.

The price of raw materials such as PTA, polyester staple fiber, viscose staple fiber and other raw materials increased sharply, and the market paction prices of 1.4D, 1.5D polyester staple and viscose staple fiber exceeded 7150 yuan / ton, 13500 yuan / ton respectively.

But polyester yarn, polyester cotton yarn and cotton yarn have encountered strong sniping of downstream fabric factories, garment factories and export orders. The profit of blended yarn has been declining. Some small and medium-sized cotton mills have to adjust their product structure again to increase the production capacity of medium and low count cotton yarn.

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The most active May contract rose 1.14 cents, closing at 58.29 cents, which is the largest single day increase since last December, and the market has no obvious positive news. The rise is mainly technical adjustment, and cotton prices are at a low level. After two consecutive days of stabilization, some of the funds have been attracted. In addition, data show that speculators increased their net short positions of ICE cotton futures options to 9673 hands, to 36537 hands, the highest level since May 2006. This indicates to some extent the trend of the fund. It is estimated that the cotton futures price will continue to rebound in recent ICE, which is limited by the fundamental improvement of the fundamentals. ICE cotton futures Monday

The 1609 month contract of Zheng cotton futures went up and down on Monday, rising 5 yuan, closing at 10115 yuan, closing about 301 thousand hands, holding about 632 thousand hands.

On the spot, China's cotton price index 3128B cotton index 11983 fell 22 points yesterday, the spot index continued to fall, fell below 12000 front-line, the decline has expanded compared with the previous few days, and with the fall of Zheng cotton price, the spot price will also be weak, especially the low level, some enterprises with financial pressure have stepped up sales promotion, allowing sales to return the funds as soon as possible, the market parties are still in the wait and see period, the news is relatively flat, Zheng cotton futures after yesterday's high up, followed by the surrounding commodity down, the overall dimension is weak, and the recent performance will be low adjustment.