Price Index Continues To Rise, Zheng Cotton Drive ICE Cotton Rebound

Overview

Price index continues to rise;

The paction is still hot, the paction price is rising, the spot resources are tight, the quotation is rising, and the price is pure.

Market trend adjustment is the main trend; Zheng cotton continues to rise, driving ICE cotton rebound.

1. Domestic cotton market

1, China

Price index statistics

The average weekly price of China's cotton price index is 12923 yuan / ton, up 216 yuan / ton compared with last week. The average price of 2129B week is 13196 yuan / ton, up 178 yuan / ton compared with last week, and the average price of 2227B week is 11937 yuan / ton, up 170 yuan / ton compared with last week.

2. Domestic market dynamics

In the week of June 27th (-7 1 months), the total output of cotton reserves was 107 thousand tons, with a total turnover of 106 thousand and 900 tons (56 thousand tons for textile enterprises and 50 thousand and 900 tons for non textile enterprises), with a turnover rate of 97.97%, with an average paction price of 13003 yuan / ton.

New cotton planting -- since June 25th, the cotton topping work of local and regiment side teams has been carried out in an all-round way to control the growth of main stem of cotton plants, to promote early boll setting, multiple bolls, and to reduce the shedding of cotton plants.

A large household of 2000 mu of fine wool cotton has been planted in Sha ya. This year, the cost of "topping" from Shache, Jiashi, Mengaiti and local employment workers has been significantly reduced compared with previous years, and the cost of cotton planting has declined.

At present, the biggest worry is that due to the drought and the opening of the reservoir, the water discharge is relatively late. Moreover, the "queuing" period of water is relatively long, which leads to cotton fertility and nutrition can not keep up, which affects the budding and flowering of cotton.

Last week, the Yangtze River Basin, Hubei, Anhui, Anhui, Hunan and other cotton areas heavy rain, rainy weather for a long time is not conducive to cotton growth, some cotton fields have pests and diseases.

Business dynamics - Zhengzheng rose, CF1701 contracts exceeded 14000 yuan per ton / ton, as well as the national reserve cotton wheel price, auction average daily paction price "Climbing".

According to some ginning plants in southern Xinjiang, as of the end of June, although there were relatively few cotton enterprises involved in the inspection, package factories or lease processing lines in the mainland, the large scale cotton processing enterprises and traders in the Xinjiang inner part of Xinjiang went to the individual cotton processing enterprises to discuss the package factories or cooperative acquisition processing according to the advantages of "close water towers".

Most of the contractors need to have the loan qualification of the agricultural development bank or credit cooperatives. The cotton resources around the factory area are relatively abundant, and the processing equipment must contain "three wire" cleaning machine and new leather cleaner. The price of the lessor is concentrated at 60-100 yuan and ten thousand yuan, but the final paction price is mainly based on the cooperation.

Compared with previous years, the cost of foreign contracted production and production line leasing of the cotton picking factory in Jinghe is different from that in previous years. The rents of 20%-30%, Kuitun, Tacheng, bole, etc. in the northern Xinjiang have not declined but increased slightly.

Processing volume - as of July 1st, the Xinjiang professional supervision warehouse actually accumulated 3 million 530 thousand tons of lint.

Warehousing volume - as of July 1st, Xinjiang's professional warehouse has actually accumulated 3 million 340 thousand tons of lint.

Shipment of Xinjiang cotton - from June 24th to June 30th, 5669.098 tons of cotton pported by the highway through the checkpoint of Mei County, Shaanxi, were reduced by 8902.262 tons compared with last week.

In September 1, 2015 -2016, the total amount of highway verification was 1 million 899 thousand and 900 tons in June 30th.

Zhengzhou cotton futures - as of the week July 1st, Zheng cotton continued to rise sharply, high volatility, high-profile breakthrough 14000 front-line, the main contract 1701 closed at 14735 yuan / ton.

At present, Zheng cotton holds 704 thousand positions, adding 49 thousand positions.

{page_break}

Two. International cotton market

Last Friday, the price of ICE cotton contracts rose. In December, the contract reached 65.13 cents / pound, up 0.86 (1.34%), and volume decreased.

In July 1st, the US dollar index fell and oil prices rose to boost market sentiment. The Chinese market continued to rally strongly to promote cotton prices rebounded. ICE futures opened higher and the December contract recovered half the day before.

With the recent digestion of bad factors, cotton prices will remain at a high level.

Three, yarn Market

Pure cotton yarn market trend adjustment, cotton yarn market overall turnover scattered, although bulk bulk shipments were flat last week, but a large number of pactions less.

65/C35 32S and 21S demand is acceptable; polyester viscose yarn sales in general; pure polyester yarn prices vary little, T45S sales are better than other specifications; human cotton yarn market performance in general, the price has a downward trend.

As for the specific situation, the cotton mill has the intention of increasing the price by the influence of strong cotton, and the range is about 200-500 yuan / ton.

Four, macro environment

1, the RMB broad shocks into the main tone of the exchange rate environment favorable economic recovery

Since the two quarter, the RMB has weakened against the US dollar.

Analysts pointed out that the outlook for the second half of the year, the Fed's interest rate expectations are significantly weakened, and foreign exchange holdings continued to narrow the impact of factors such as the decline, the RMB exchange rate is not expected to have a greater devaluation pressure.

Exchange rate fluctuations will not have a significant negative impact on macroeconomic recovery.

2, taking stability as the key link in the second half of the year, "four arrows".

In the first half of this year, macroeconomic data will be released soon.

Some agencies said that the second quarter economic growth was basically flat in the first quarter, and the GDP growth in the first half was about 6.7%.

Insiders said that steady growth is still the main keynote in the second half of the year.

Against this background, the economy will exert itself in the four major fields of investment, supply side structural reform, state-owned enterprise reform and "double creation".

3, the US manufacturing expansion in June reached a 16 month high.

The report released by the US Association for supply management on 1 days showed that new manufacturing orders and production indices were rising, and the US manufacturing industry expanded at a new 16 - month high in June.

According to the report, the US manufacturing purchasing index rose to 53.2 in June from 51.3 in the previous month, higher than the 51.4 expected by economists, a record high since February 2015.

The manufacturing purchasing managers' index is a clear gauge of the comprehensive development of the manufacturing industry in the United States. The index is at a critical point of 50, which is higher than 50, indicating that the manufacturing industry is expanding, and below 50 indicates that the manufacturing industry is in a state of atrophy.