Sale Of State Cotton Stores Started, Bullish Atmosphere Reduced

Sale of State Cotton stores started, bullish atmosphere reduced

Since May 3rd, national cotton stores have started selling.

The pattern of tight supply is expected to be eased gradually.

Prices will also oscillate.

However, from the two days before the sale of State Cotton stores, almost one hundred percent of the turnover rate, the high price of imported cotton and domestic cotton, as well as the enthusiasm of participating customers in the industry have never stopped. This also makes the market worry that the decline of cotton prices in the past two days is temporary and future.

There is also a possibility of a sharp rise.

A comprehensive analysis of the information released by the relevant agencies on the sale of State Cotton stores revealed that the ongoing sale of State Cotton stores was more consistent with market realities in terms of the number of days to be sold, the setting up of the reserve price, and the development of the premium after quality inspection. This is the main reason for attracting the cotton industry chain enterprises to actively participate in the paction.

At the same time, the domestic cotton market supply resources are scarce, many cotton enterprises hope to participate in the procurement of raw materials through active participation.

According to the reporter's understanding, the State Cotton store plans to sell 30342.16 tons in May 3rd, actually clinch a deal 30136.88 tons, the turnover rate achieves 99.32%.

Among them, China made 8060.48 tons of cotton and 22076.39 tons of imported cotton. The highest price was 13820 yuan / ton (imported cotton in Australia), the lowest price was 9730 yuan / ton (domestic cotton), the average length was 28.3, the average price was 11959 yuan / ton, and the price of 3128 cotton was 12904 yuan / ton (fixed weight).

In May 4th, the national reserve cotton auction bid price was 12021 yuan / ton, the number of bidding was 30 thousand and 200 tons.

In the first section of the first sale of the national cotton store in May 4th, all the imported cotton were sold, with the highest paction price of 13180 yuan / ton.

Judging from the turnover in the morning, the highest price increase has reached a new high. The maximum increase rate of imported cotton is 2840 yuan / ton, which is 100 yuan / ton higher than the highest price increase in May 3rd.

Zhou Wenke, research director of the earth futures research and development department, thinks that the paction rate and paction price of the national cotton store are at a high level in the early stage of selling. It also shows that the domestic cotton prices in the early stage, especially the rise of Zheng cotton price, are reasonable and highly anticipated.

"High turnover rate and high paction price, first, confirmed the shortage of cotton supply in the domestic cotton market and the lack of high-quality cotton; two, it was confirmed that in the early decline of cotton prices, there were excessive inventory problems in the cotton industry chain; three, it was confirmed that the low cotton prices hit farmers' enthusiasm for planting cotton, which has led to a decline in the domestic cotton planting area in the new year, and caused the market to worry that the supply of cotton will continue to tighten in the new year."

Zhou Wenke said, with the continuous selling of state cotton and cotton, the supply and demand structure and supply structure of domestic cotton market will be improved. If we take into account the continuous supply of other cotton resources, such as the sale of high-quality Xinjiang corps cotton, it is estimated that in May and June, the paction rate and the selling price of national cotton and cotton will both fall down. In the 7 to August, with the exhaustion of other supply resources in the domestic cotton market, the paction rate and paction price of the national cotton sale will probably rise again.

Some of the cotton business representatives who took part in the sale of State Cotton stores believed that the high turnover rate and high paction price did not mean that the price of Zhengzhou cotton would go up synchronously. The main reason was that the psychology of the cotton market in China has weakened. The key to the cotton price in the later stage depends on whether the whole industry chain can form a virtuous circle.

For example, at the point where cotton prices are located, if the downstream products of cotton are sold well, the national cotton storage will go smoothly, and cotton prices will also run smoothly at the current price. Otherwise, the price of cotton will easily fall.