Why Is The Current Lint Spot Price High?

It is understood that, although nearly two days, Zheng cotton main contract CF1609 fell sharply from 12885 yuan / ton high point, low point 12260 yuan / ton, from the low point 11865 yuan / ton is not far away, ICE cotton main contract also from 62.88 cents / pound to 61.20 cents / pound echoed, the cotton spot quotation adjustment is slow (traders resist strong willingness), but still with the futures to explore, in contrast to electronic disk and cotton spot, the domestic 2015/16 cotton spot quotation performance is strong, the margin margin of traders is narrow, 3128B2, 3128C2 level.

The gross price of the gross domestic product is 12900-13000 yuan / ton, 12600-12800 yuan / ton (local enterprise processing).

What causes the current lint spot price to remain high? Market participants believe that the reserve of imported cotton is the engine of high cotton prices.

The increase of cotton prices is very popular, not only in 2012, but also in imported cotton 100%. The turnover rate of domestic cotton is also impressive.

As of May 23rd, 2012 years of reserve cotton imports have been 257 thousand and 500 tons, the remaining resources are not much, it is expected that the auction will enter the white hot, paction price or continuous rebound.

The supply of high-quality cotton resources is insufficient.

As of May 23rd, the volume of imported cotton and domestic cotton auction was 257 thousand and 500 tons and 180 thousand tons respectively, but because all warehouses had to cooperate with the public inspection of bags, they should also try their best to organize them.

The storage capacity of many warehouses is seriously overrun, and cotton reserves can not be supplied in large quantities in short term.

At present, the shortage of high quality cotton in the market has not been effectively alleviated. Therefore, traders holding spot resources in 2015/16 will have stronger price intentions.

Cotton prices are fixed on the spot.

In May 24th, Qingdao, Zhangjiagang and other places EMOT SM 1 5/32 ", SM 1 5/32" Australian cotton quotations were 72.20 cents / pound, 76.20 cents / pounds (5/6 shipping date), and May 10th EMOT and Australia cotton quotations were 72.25 cents / pound, 76.40 cents / pound, more than 10 days only reduced 0.05-0.20 cents / pound, and the ICE phase cotton relatively large callback difference.

On the one hand, the US cotton signed the export progress speeded up. As of May 12th, the US cotton has completed 97% of the annual export volume; on the other hand, the average daily average price of China's cotton reserves has been in the 11800-12300 yuan / tonne area, and the average price is rising as the price of imported cotton is hot.

Traders have accumulated cash and actively participate in the auction of cotton reserves.

From the statistics point of view, in the three weeks of the 3-20 day of the reserve cotton rotation in May, the proportion of non-woven enterprises in the auction was 32.9%, 35% and 45.8% respectively. The proportion of non-woven enterprises in this week is still expanding. Meanwhile, the average price of the round out paction has also fallen. It is estimated that the cotton spot resources in 2015/16 are more than 80% in the hands of cotton trade and middlemen (except Corps).