Cotton Prices Continue To Rise, But The Driving Force Is Limited.

As for the cotton prices rising sharply in the early stage, with the increase of market resources and the increase of market resources, the pattern of tight supply of cotton will gradually ease, and cotton prices will also fall.

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, and the enthusiasm of participating customers in the industry have never stopped. This has made the market worry that the current decline in cotton prices is temporary and there may be a sharp rise in cotton prices in the future.

The sale of state-owned cotton makes China

The market is expected to ease the pattern of supply, and will also play a stabilizing role in the rising cotton prices. At present, the emergence of "cotton picking" in cotton reserves is partly due to the existence of high-grade cotton gaps in textile enterprises, and on the other hand, the market needs a fixed time.

The reporter has interviewed a number of textile cotton enterprises and market professionals on the current paction of reserve cotton.

A futures market expert said that the announcement of the policy of reserve cotton production basically confirmed the speculation of the market, and the supply pressure of short term reserve cotton increased largely by the market.

In the long run, the pressure of national cotton inventory will be alleviated, which will be very beneficial to the healthy development of China's cotton industry, and domestic cotton prices will continue to rise with insufficient momentum.

In the announcement of the national reserve cotton rotation, the domestic and foreign markets for a period of time were put forward.

There has been a noticeable rapid rise. The auction rate of cotton reserves has been over 3 days or more than 70% a week.

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From now on, the volume has reached 99% for 3 consecutive days, and the market is expected to increase the volume of supply in the late stage.

However, insiders said that at present, the inventory of enterprises is not high, and the traditional off-season of the lower reaches is coming soon. The demand for replenishment of the latter part of textile enterprises is there, but it will not be released for a short time.

Therefore, it is not recommended for downstream enterprises to increase procurement volume.

Wu Faxin, chairman of Shanghai yarn Bao Technology Limited company, also believes that there will be no big fluctuations in China's cotton market in May, and the factors for speculation in the market have basically been determined.

At present, the high turnover rate and high paction price confirm that there is a shortage of cotton supply and high quality cotton in domestic cotton market. Two, it is confirmed that in the early decline of cotton prices, there is a problem of excessive inventory in the cotton industry chain.

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 consider the other cotton market's supply of resources in succession, such as the sale of high quality Xinjiang production and construction corps cotton, it is estimated that in May and June, the turnover rate and the selling price of the national cotton store will both fall.