How Can Cotton Prices Be Reduced?

Although it entered the textile off-season in June, most textile enterprises in the country reflected the overall smooth operation of the purchase and sale. However, this steady running situation was recently broken by the soaring cotton price. With the skyrocketing cotton futures prices, the auction price of reserve cotton was raised earlier than before, and the higher the price was, the higher it was in July 1st. Reserve cotton The average price of the spanaction is 13368 yuan / ton, and the price is 3128 yuan 14272 yuan / ton. At present, most of the spinning enterprises are caught off guard against the cotton price which has not been digested by the downstream enterprises. At present, most of the spinning enterprises are losing money soon, and the pressure is enormous. In order to deal with the unexpected situation of the current cotton price inflation, many textile enterprises have indicated that they should observe for a few days and do not participate in the auction of cotton reserves. Henan Textile Industry Association has asked the relevant departments of the state to increase the quantity of cotton reserves for the cotton reserves, take measures to curb the soaring cotton prices, and if the cotton price can not be lowered, the spinning enterprises will take measures such as limiting production or stopping production and holidays.

Recent domestic cotton Stock market is relatively strong, although the market is not much, but the price center of gravity increased slightly, of which the mainstream price of 3128B is around 13400-13600 yuan / ton, some businessmen have a mentality of selling away, waiting for the market changes in the late. At present, it is generally expected that a large number of new cotton to the mainland market will be around November, and the dumping will be completed by the end of August. There will be a blank period of 2-3 months. Abandoned reserves Overall relative demand is not enough, and early traders are running low inventory, and there may be replenishment operations in the market. The long staple cotton market continues to be weak, the goods are not good, and the stock is still partly overstock. At present, the price of the 137 level mainstream plants is about 20700-20800 yuan / ton, and the 237 level price is 19900-20000 yuan / ton level.

ICE cotton rose more than 1% on Friday, reversing a trend of over 2% on Thursday, with the most active December cotton price being 0.82 cents, or 1.28%, at 64.99 cents a pound, with a trading range of 64.34-65.18 cents, mainly due to the short profit of the us long weekend and the fall of the US dollar. Although China has increased its market supply by throwing storage, it has continued to be hot because of the hot storage. The spanaction price is on the high side, especially the import cotton turnover rate has always kept 100%. This obviously boosted the US cotton market, and at the same time, the cotton production is expected to reduce substantially, with the support from the local market to buy, and the US cotton will enter the critical period of crop growth, and the weather speculation factors will increase, which will lead to a strong probability of short-term shock in ICE cotton.

In the domestic market, Zheng cotton has been trading on a monthly basis for a month, and the volume is increasing again. The 1701 contract of zhengmian main contract opened at 14760, closing at 15425. The settlement price rose 735, the highest 15425, the lowest 14730, and the settlement price 15240. Domestic cotton price index once again rose widely, of which the Ccindex3128B representing domestic standard grade cotton spot was 13333 yuan / ton, up 48 yuan / ton compared with the previous day.

State cotton is still the dominant force in the cotton market. The recent daily output is still at 2-3 tons or lower, and the situation of spinning and selling is still very obvious. Especially, Zheng cotton has soared for three consecutive days, stimulating the auction price to rise sharply. Because the supply of domestic lint resources is relatively insufficient, the spot market traders' quotation is also rising, and the textile enterprises are still outstanding because of the fact that the spot market is low to the high price. The strategy of raw materials inventory is still maintained. The inventory level of raw materials has continued to operate at a low level, especially the recent cotton spot inflation has obviously exceeded that of the downstream textile enterprises. The situation of the spot market has been rising sharply.