What Is The Logic Behind The Rise In Cotton Prices?

Recently, domestic lint spot prices continued to rise.

As of 20, Hebei, Shandong local ginning factory 3128 lint factory quotes at 11300-12300 yuan / ton, part of the increase of 300-500 yuan / ton.

The following favorable factors support the rise in lint spot prices this week:

Textile and clothing exports increased substantially in March, adding positive atmosphere to the market.

Driven by the shortage of goods, the support of high cost and the sharp rise of futures prices, it is estimated that domestic cotton prices will continue to operate in a stable and strong position before the arrival of the cotton reserves, but the market situation still needs careful attention after the delivery of cotton reserves.

Futures price four limit, driven lint spot market.

Before that, Zheng cotton, which has been in a low position, suddenly started a skyrocketing mode since last Monday (11). The main contract CF1609 was sealed on the 11 day after the trading limit. Shortly after the 12 day opening night, Zheng cotton CF1609 and CF1701 contract price renewed again, and the 13 day morning opened, and Zheng cotton's 1605 contract was also rapidly trading.

This week, on Monday, the price limit rose by 715 yuan / ton on Tuesday. On the 20 day, Zheng cotton was closed at the beginning of trading. The calculation of Zheng cotton has increased by 2000 yuan / ton continuously.

There are fewer sources of goods in the market.

The psychology of staying up is still alive.

Cotton planting is expected to be sluggish in the new year.

Under the situation of large quantity reduction, the price of seed cotton continues to rise, the running of the cotton mill is not good enough, the overall start-up rate is not high, the supply of goods in the hands of manufacturers is relatively limited, and the willingness to sell at low prices is not high enough.

The detailed rules are announced to stabilize the market.

In April 15th, the website of the national development and Reform Commission issued the notice on arrangements for rotation of state cotton reserves, regardless of the timing of the rotation, the volume of the rotation and the price of the rotation, which fully considered the actual market situation and followed the rules of market sales.

The above positive factors support the rising price of lint cotton, and the launch of the cotton reserves will soon be launched. Even if the price rises, textile enterprises will continue to follow suit, and inventory will remain at a low level with the use of stock. The market wait-and-see mentality remains, and the lint sale is still difficult to make and the lint rise is limited.