Rush Orders For Cotton Traders Are Likely To Be Caught.

It is understood that, in late June, Zheng cotton futures, national cotton auction bid price, cotton spot prices rose sharply, cotton, yarn operators in Guangdong, Zhejiang, Jiangsu and other places.

To reduce funds and reduce or even stop picking up and purchasing from cotton mills, OE10S-OE21S, C21S-C40S yarn inquiry and paction were significantly cooler than in May and June.

Traders said that on the one hand, the price of cotton yarn of C40S and below in some cotton mills increased by 400-500 yuan / ton, and some large factories even reported 800-1000 yuan / ton, but the downstream intermediaries and weaving mills were not strong in digestion. The difficulty of negotiating yarn prices increased. Traders worried about riding the tiger. On the other hand, cotton textile mills, garment enterprises and foreign trade companies had strong expectations for the recent state departments concerned to increase cotton supply. Once cotton prices fluctuated in July, Cotton Traders rushed to order.

Cotton mills in Henan and Hubei analyzed cotton recently

The cost pressure caused by the sharp rise has been gradually pferred to yarn, cloth and clothing. However, compared with Zhengzhou cotton contract CF1701 and national cotton store price, the price of cotton yarn rose only 500-1000 yuan / ton (300-800 yuan / ton) in the short 20 days up to 2690 yuan / ton and 1913 yuan / ton respectively.

A 50 thousand cotton mill in Henan reflects that

Auction bid and paction price go higher and higher. The spot price quotas of 2015/16 cotton market are more and more exaggerated. The spinning of C21S, C32S and C40S yarn has not only lost profits but has a loss of 500-1000 yuan / ton. In order to complete the order, textile enterprises can only increase the price to compete for the national cotton reserves from the traders, and virtually raise the cotton price. If we want to jump out of this strange circle, we only have a way to cut down production and stop production, and the unfinished orders can only postpone delivery or terminate the contract.

It is the pressure of China's economic data to stabilize and the cotton consumption will enter the off-season after the peak season in 3-6. The two is not only the EU's economic and stability variables are increasing, but also the Federal Reserve may take the opportunity to raise interest rates, and the way of commodity rebound is very long. Three, it is the speculators' use of funds to storm the storm and cause the real economy of cotton processing enterprises and cotton mills to be severely damaged. The crisis is fundamental to the whole national economy and the state can not sit idly by. The government of India will also introduce measures to suppress speculation so that cotton prices can return to orbit. Four, at present, the US cotton is growing well, and Australia cotton has also entered the Chinese market in a large scale. Brazil cotton, which is "cheap but not cheap", has become the focus of attention of Chinese textile enterprises. Some agencies and media speculate that

In addition, the key factor that affects Zheng cotton is the timing of speculative capital selection and profit escapes at any price. It is estimated that ICE cotton will take the lead in the first downturn.