How Difficult Is The Pmission Of Cotton Prices To Be?

It is understood that, by the end of June, Zheng cotton futures,

The impact of auction price and spot price of cotton rose sharply, and Guangdong, Zhejiang, Jiangsu and other places.

Operators in order to avoid risks and reduce the pressure of funds to reduce or even stop picking 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 in some cotton mills C40S and below rose by 400-500 yuan / ton, and some large factories even reported 800-1000 yuan / ton increase, but downstream intermediaries and

Poor digestion capacity, difficulty in negotiating yarn prices, traders worried about riding a tiger; on the other hand, cotton textile mills, garment enterprises and foreign trade companies will soon introduce policies to increase cotton supply in the near future. Once cotton prices fluctuate in July, Cotton Traders rush orders.

Cotton mills in Henan, Hubei and other places analyzed that the cost pressure of cotton raw materials rising sharply has been gradually pferred to yarn, cloth and clothing recently. However, compared with Zhengzhou cotton contract CF1701 and national cotton store price, the price of cotton yarn rose only 500-1000 yuan / ton (actually 300-800 yuan / ton) in the short 20 days up to 2690 yuan / ton and 1913 yuan / ton respectively.

A 50 thousand spindles cotton mill in Henan reflects that the increase in spot price quotas of cotton in 2015/16 is more exaggerated because of the increase in bid price and paction price of the national cotton auction. The spinning of C21S, C32S and C40S yarns is not only profitable but has a loss of 500-1000 yuan / ton. In order to complete the order, the spinning 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.

Some agencies and media speculate that the medium and long term rise of cotton has been opened, and the price of cotton yarn, grey cloth, clothing and foreign trade contract will gradually become logical. The problem of poor industrial chain pmission will soon be cleared.

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. I do not agree with this view.

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.