Domestic Cotton Market Prices Rose Larger

In the week, the daily output of reserve cotton remained at the level of the previous week. As of June 30th, the cumulative cotton reserve plan for the 2015/2016 period was 1 million 67 thousand and 900 tons, with a total turnover of 1 million 41 thousand and 500 tons, with a turnover rate of 97.53%, with an average price of 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, with a monthly average consumption of about 600 thousand tons.

Cotton is still in a state of tight supply.

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

Spot market resources are limited.

The average price of the reserve cotton sold in the auction is about 300 yuan higher than the auction price, and the textile enterprises can not digest it.

In the week, the cost of raw materials increased gradually with the increase of the auction price of cotton reserves, and the profit space was compressed.

However, in the current Jiangsu and Zhejiang market, the sale price of C32S yarn in the market is 20500-20800 yuan / ton, the profit of using reserve cotton spinning C32S yarn is still 500-1000 yuan / ton.

At the same time, India's domestic cotton prices are rising rapidly, making India, Pakistan and other cotton mills.

The quotation is like a rocket, the quotation of conventional yarn has increased by more than 0.20 cents / pound, and the Chinese market seized by imported yarn has been handed back 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 the Zhengzhou cotton once again launched 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. It 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 industry was on the rise, and the contract price 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.

At present, reserve cotton is still not up to volume. It is expected that the strong trend of the Chinese market will continue to provide support for the market, but it does not exclude the possibility of increasing the volume of investment. Investors are advised to be cautious in participating in short-term trading.