Good Cotton Resources Concentrated In The Corps Cotton Enterprises Continue To See High

In April 21st, Xinjiang, Akesu, Bachu, Korla and other places 2128C2 (3129C2), 2128B2 (2129B2) grade lint and broken ratio strength in 27-28CN hand picked cotton gross price quotations generally rose to 12200-12300 yuan / ton, "double 28", "double 29" hand picking cotton price quotas reached 12500-12600 yuan / ton, the inquiry cotton textile factories and traders in the mainland increased compared with March, and the paction also eased up.

On the one hand, cotton processing enterprises and Cotton Traders according to futures contract or commodity cotton electronic matching contract pricing in recent months (nearly two May contract in 11700-11800 yuan / ton), directly receiving goods.

Not much, but mainly by traders and middlemen.

Some agencies analyzed that some cotton business enterprises were speculating short on Zheng cotton, but the Bulls continued to pull up violence and cotton traders were stuck in order to reduce the loss of new cotton delivery spot. On the other hand, a good supply of cotton was not much used by cotton enterprises and middlemen. The textile mills with only 3-7 days' raw material inventory had to purchase a pition to cotton reserves in early May.

It is reported that the recent sale of lint sales is extremely active, and the quality of machine picked cotton and hand picked cotton has dropped continuously. The main reason is that the supply of high-grade Xinjiang cotton has been stretched, and cotton resources are concentrated in the Corps.

According to the formula for calculating reserve price of reserve cotton, the current bid price of 11550-11600 yuan / ton auction (high quality cotton or corps cotton auction or 12000 yuan / ton) has a very limited impact on the current 12400-12500 yuan / ton 3128B spot. Therefore, in May 3rd, the domestic cotton price will be stabilized or slightly down, but there will be no room for deep callback. Cotton textile enterprises will have the ability to digest the current cotton prices and foreign trade companies in 5 and June.

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The order is an important factor determining the trend of cotton price.

On the 20 day, Zheng cotton CF1609 contract was opened up, the high point was 12265 yuan / ton, a five month high, whether there is a chance to test 12760 yuan / ton differences between the parties.

According to some cotton enterprises, the futures market has been separated from the fundamentals, and the wrestling between the two sides tends to be balanced after four consecutive "one Yang fingers".

On the one hand, the situation of long term discount futures has been fundamentally reversed. Whether cotton spot in short term can keep up with the pace of futures is the key to whether Zheng cotton can take off again or even break through 12760 yuan / ton. On the other hand, cotton reserves are replenish with cotton resources, but there is little room for downward pressure on prices.