There Are Also Many Cotton Hunters In Stock Market.

There is a positive correlation between net profit and cotton price in traditional textile manufacturing companies. Taking color spinning enterprises as an example, the gross profit rate and cotton price of colored spun yarn have a very obvious positive correlation, because the sales of colored spun yarn are mostly based on cost plus pricing.

Huafu color spinning, Baron East, Lutai A, Luen Fat shares and other companies are the same.

According to the elasticity of performance, assuming that cotton prices rose by 10%, according to the linear regression analysis, the four companies' net profit is expected to rise by 6.25% - 16.68%.

In addition, securities researchers pointed out that A shares, Changshan shares of cotton and

The product accounts for 60% of the main revenue and the future performance is worth looking forward to. The new race shares are the national key leading enterprises of the large quality cotton industry. In the past three years, the average yield per unit area of cotton is higher than the world average level. The Akesu area where the new agricultural development is located is one of the important commercial cotton production bases in the country, and the largest commercial cotton production base in Northwest China. The region is rich in long staple cotton agriculture, and the company has the advantage of developing the cotton industry.

Recent cotton spot futures market, at the end of Qingping, does it mean that cotton is already windy? Has cotton city been already warm in spring? Analysts have pointed out that cotton futures prices rebounded sharply from the decline in the stock prices of textile enterprises before the arrival of the peak season and the uplink of the start-up rate. Meanwhile, the cotton yarn has begun to pfer to the weaving mill, and the demand for cotton replenishment in textile enterprises has gradually increased.

Last week, the four trading days of the A share textile manufacturing sector closed, and the three trading days rose in the last three trading days, while the plate index rose by 4.9%.

The above seven related listed companies share the weekly stock price. Changshan stock, new Sai shares and Xin Nong share price have been rising continuously during the week.

"Sixteen thousand cotton spots in the year, 90% of the spot industry agreed that although the presence of short-term cotton concentrate listed, but the fundamentals of supply and demand have changed dramatically."

Lin Guangmao believes that the big market will be consistent with the various factors of the trend, but the trend is not necessarily a big market, the core of the problem is the fundamental changes have taken place.

Reviewing the performance of cotton market since 2010, the change of cotton market policy is the most important factor that affects cotton price nerves, and it is also the key factor to change the fundamentals.

From 2010 to 2011,

In order to stabilize the cotton market, the state began to implement the temporary cotton purchase and storage policy in 2011, and the price from 2011 to 2013 was 19800 yuan, 20400 yuan and 20400 yuan per ton respectively.

Cotton prices fell from nearly 35000 yuan / ton sky price.

The temporary storage policy has stabilized domestic cotton production and safeguarded the interests of cotton farmers and downstream textile enterprises. However, the high price of domestic cotton has also widened domestic and foreign price differentials.

China Cotton Information Network reported that under the driving force of price difference at home and abroad, China's cotton industry showed a sharp increase in imports and a backlog of inventory, causing damage to the domestic cotton industry.

The competitiveness of China's cotton industry is low and the level of tariff protection is low. Under the condition that international cotton prices continue to fall and domestic production costs continue to rise, the cotton trade situation is extremely severe.

In 2014, with the implementation of the national cotton target price policy, domestic and foreign markets

Gradually narrowing, the tariff import price difference of 1% quota in December 2014 has narrowed to 2500 yuan per ton.

In the first half of 2015, the average price of domestic grade 3128 cotton was 13426 yuan per ton, while the average price of cotton in the international market was 11231 yuan per ton during the same period, and the import power of enterprises decreased.

After two years of consolidation, the industry has reached a consensus that cotton is building the bottom of history.

Mei Ziqing, an analyst with China cotton information network, points out that there is a rare market limit in the recent Zheng cotton market. There is no support for Fundamentals, the accumulation of market changes, and the resonance effect of the futures market.

"The national cotton trading market daily tracking of the new cotton warehouse data show that the new frontier cotton out of storage early in the spring festival began to gradually release, which also to a certain extent reflects the continuous warming of the downstream consumer market after the Spring Festival.

But at that time, the focus of the whole industry was concentrated on the situation of reserve cotton wheels, ignoring these changes.

According to the General Administration of customs data, the export growth rate of textile industry in March was up to 18.7% compared to the same period last year.

Market participants believe that the revival of exports is expected to bring strong boost to the upstream cotton industry.

From the supply point of view, the domestic cotton market is also in a clear pattern of reduction.

According to the data of China Cotton Association, the average cotton planting intention in 2015 decreased by 11.5% in 2016, which was slightly lower than that of the previous period.

According to the subregion, the cotton planting intention in Xinjiang cotton region decreased by 8.6%, 0.5 percentage points higher than that in the previous period, and the decrease of cotton planting intention in the mainland cotton area was slightly lower than that in the previous period. The cotton area in the the Yellow River River Basin dropped by 19.06%, an increase of 0.1 percentage points over the previous period, and a decrease of 15.1% in the Yangtze River Basin cotton area, an increase of 0.8 percentage points over the previous period.