The Cost Of Raw Materials For Spinning Enterprises Increases With The Increase Of The Auction Price Of Cotton Reserves.

The price of domestic cotton market rose considerably, and the average price of cotton price A index (CNCotton A), representing the 2129B cotton price in the mainland, was 13060 yuan / ton, up 107 yuan / ton compared with last week. The average price of cotton price B index (CNCotton B), representing the 3128B cotton price in the mainland, was 12746 yuan / ton, up 128 yuan / ton.

When the cotton growing area in Xinjiang entered the flowering stage, it was postponed for about 5 days compared with the previous years. In addition to the bad weather in some areas, the cotton growth in most parts of the world was better. Due to the different weather conditions in northern and southern Xinjiang, the growth of cotton was quite different.

The weather conditions in the inner cotton area are more suitable for cotton growth. Cotton is generally in the fifth true leaf stage to the budding stage. A few sporadic flowers are blooming. Generally speaking, the growth of cotton in the the Yellow River river basin is better than that in the Yangtze River Valley. Most cotton growth and development period is earlier than that in the same period last year. The Yangtze River Basin is affected by low temperature and rainy weather, and cotton grows slowly, and the overall growth is worse than last year.

Zhou,

The cost of raw materials increases gradually as the auction price of reserve cotton increases, and the profit space is compressed.

However, with the current sales price of C32S in Jiangsu and Zhejiang markets in 20500-20800 yuan / ton, the profit of the cotton spinning C32S yarn with reserve cotton is still at 500-1000 yuan per ton.

At the same time, the price of cotton yarn in India and other textile factories in India and Pakistan increased as the price of cotton yarn rose, and the price of conventional yarn increased by more than 0.20 cents / pound, and the Chinese market seized by imported yarn was returned to Chinese cotton spinning enterprises.

Only a few foreign trade companies have responded. In June, orders for cotton yarn and grey fabric have gone downhill. Orders for low count yarn and low count fabric returned from Southeast Asia and other countries have gradually entered the finishing stage, with a strong desire to cut production and stop production.

Futures market, when Zhou Zheng cotton again opened the mad cow market, the main contract CF1701 night market rose all the way in June 28th, and the trading limit was released at the beginning of June 29th. It ended up at 14670 yuan / ton, rising by 700 yuan / ton, which triggered a scream again, which also provided support for ICE cotton. In addition, under the influence of the decline in the US dollar index, the rise in oil prices, the surge in US stocks and the less than expected US cotton area, the 28 day ICE cotton was on the rise.

More than 100 rebounded sharply.

However, on the 30 day, the USDA coverage area grew by 17% over the same period last year, exceeding the market expectations and the ICE futures contract price plummeted.

Zhou,

As of June 30th, the accumulative total of cotton reserves totaled 1 million 67 thousand and 900 tons in the year of 2015/2016, and 1 million 41 thousand and 500 tons of accumulated warehouses were sold. The turnover rate was 97.53%, and the average price was 12243 yuan / ton.

In June, 28-30 days and three days, all the pactions were completed, and the average daily paction price increased gradually, reaching 13366 yuan / ton on the 30 day.

Nearly two months from May 3rd, the average monthly turnover is around 520 thousand tons. According to the national cotton market monitoring system, China's cotton production and storage forecast has reached 7 million 211 thousand tons this year, and the average monthly consumption is about 600 thousand tons. Due to the fact that the spot market can provide less resources, the supply of cotton is still tight.

Therefore, even without the imported cotton, the turnover rate of reserve cotton is still high.

The spot market has limited resources, and the average reserve price of the reserve cotton sold by traders is about 300 yuan higher than the bid price. The textile enterprises can not digest it, and the actual turnover is rare.