Cotton Futures Market Is Changeable And Profit Factors Are Summarized.

The near future,

futures

The market is changeable, which makes many people feel confused. The author lists recent profits and bad factors in the market. Let's take a look.

Profit factors:

Futures prices continued to rise, and the spot price of lint cotton was higher.

Due to the weakening of the US dollar, India's cotton production expected to be lowered and the purchase of the British referendum before June 23rd, the US cotton rose last week. As of last Friday (June 17th), the ICE12 month contract closed at 65.92 cents per pound, up 0.85 cents from the same period of the previous week. Zheng cotton also continued to rise. As of last Friday, Zheng cotton CF1609 contract closed at 13480 yuan / ton, up 580 yuan / ton compared with the previous week, and the forward CF1701 contract was closed at a daily limit, closing at 13325 yuan / ton, up 595 yuan / ton compared with the previous week, and the spot market of many cotton lint.

Reserve cotton output remained high, and the base price was raised.

At present, the sale of cotton reserves is still hot. As of June 17th, the total turnover of cotton reserves was 847711.08 tons, of which the total volume of imported cotton was 296129.07 tons, and the turnover rate was 98.16%. The total turnover of domestic cotton was 551582.01 tons, with a turnover rate of 96.71%.

In the past two weeks, the base price of the launch has reached 12364 yuan / ton and 12325 yuan / ton respectively, which is 300-500 yuan / ton higher than the base price in May.

Market lint supply shortage, manufacturers still very strong mentality.

Cotton imports are expected to be sluggish in the new year, and the import volume of cotton will drop sharply in 2016.

According to the General Administration of customs statistics, in September 2015 -2016 April, China imported 645 thousand and 400 tons of cotton, a decrease of 524 thousand and 800 tons compared with that of the previous year, a decrease of 44.85%.

At present, the market price of seed cotton is still strong, the cost is increased, and the processing profit of domestic ginning mills is very small. Most manufacturers are still in a downtime state. The supply of goods in the hands of manufacturers is relatively limited, resulting in low willingness to sell low-priced ginning plants.

The export volume of textile and clothing continues to grow, which will add profits to the market.

According to the latest statistics of the General Administration of customs, in May 2016, China

Clothing exports amounted to $23 billion 516 million, an increase of 12.74%, an increase of 0.53% over the same period last year.

Among them, exports of textiles (including textile yarns, fabrics and articles) amounted to US $10 billion 205 million, up 1.59% over the same period last year.

In 2016 1-5, the total export volume of textiles and clothing in China was 101 billion 16 million US dollars, down 1.97% from the same period last year, of which the total export volume of textiles was 43 billion 325 million US dollars, down 0.03% from the same period last year.

The export volume of textile and clothing continues to grow, adding a positive atmosphere to the market.

It seems that there are many more advantages now, but in the end it has to fall into the market demand.

With the textile market gradually entering the traditional off-season, the textile enterprises' enthusiasm for purchasing is not high, the downstream orders have no substantial growth, basically the goods are mainly sold in advance orders, and the spinning enterprises have lowered the price of some yarns to promote sales, and the flow spinning line has dropped considerably. The cotton parts of the pre competition textile enterprises have already arrived at the factory, and the textile enterprises have reduced their demand for cotton. Some textile enterprises are pessimistic about the market, and the overall market demand is still light.

In view of the current cotton market situation, I believe that the textile market demand is still a factor that inhibits the spot market of lint. However, the high cost and limited spot resources also support the hard spot of lint. In the near future, it is expected that the spot price of lint will be stable and strong. I wonder if you all think so.