What Impact Will The Dumping Market Have On The Market?

May is a turning point in the cotton market. At present, the industry is particularly concerned about whether throwing cotton can ease the progress of quality cotton resources? Is there a small raw material mill to choose to purchase in the market? cotton Will the decline of planting area and weather evolution support the cotton futures contracts far from the month? Although these game points can be seen, but the impact of these game points and the divergence of judgment will ultimately reflect whether futures are more or less empty?

In May 3rd, the national reserve cotton wheel started in May 3rd. According to the announcement of the national development and Reform Commission and the Ministry of Finance on the arrangements for the rotation of national cotton reserves (No. ninth in 2016), the reserve cotton Round out The sale price is calculated. This week (May 3rd to May 6th) the reserve price of the reserve cotton is 12021 yuan / ton. The actual auction price is based on the results of the public inspection and the price difference table.

From the survey data, the starting rate of textile enterprises this year is flat compared with 2014, which is better than that of 2015. This shows that textile enterprises are constantly recovering. In this case, if the market price fluctuates sharply, it will be very unfavorable to the development of the industry. Therefore, cotton destocking is a long process.

To effectively stock up, the state has drawn up a 5 year plan, averaging annually. Destocking 2 million tons, we can see the possibility of the future of China's cotton by using this rhythm. "The first is that the import quota of cotton reserves can not be increased; the second is that the price of cotton should be in line with international standards and compete with the whole imported textile yarns, so the overall price will not be very high, at least not higher than the international market; third, the actual industry on the market needs to lead to a return of cotton prices." Mei Yong, general manager of China cotton information network, told reporters.

Mei Yong believes that the surging market is unlikely to last forever. If there are some changes in detail, such as the poor quality of cotton reserves, which can not really make up for the market demand, the market may be another situation. Therefore, from the spot market, the future cotton market will become calm after prosperity.

In May 3rd, the state planned to sell 30 thousand and 300 tons of cotton reserves for the first time, including 8266 tons of domestic cotton and 22 thousand and 100 tons of imported cotton, with an auction price of 12021 yuan / ton. The actual spanaction is more popular. In the first section, 14 thousand tons of sales resources were actually traded, and all the imported cotton were sold. The highest spanaction price was 13820 yuan / ton (Australia cotton), the lowest spanaction price was 9730 yuan / ton, and the spanaction price was generally higher than the starting price.

"The activity of throwing and storing spanactions indicates that there is a certain demand in the market. At the beginning of throwing storage, the price of cotton market will not be ruled out. It is possible to increase the price of cotton, but with the development of dumping and storage, the supply of cotton will gradually increase, and the market demand will be satisfied. The cotton price will rise at the end of the year, and the space will eventually be restrained. The respondents said. However, Zhuo Chuang information cotton analyst Zhang Yanjie believes that the market adjustment of Zheng cotton has not yet ended, and the market outlook is still dominated by more ideas.