Cotton Prices Have Been Rising All The Time Since They Were Identified And Thrown Into Storage.

At present, cotton textile enterprises are limited by cash flow constraints, and the purchasing strategy of purchase and purchase is only enough to meet the demand of cotton for about 20 days.

At the end of the end of August when the national cotton store was put into operation, the cotton resources could only be purchased from the traders Department under the condition that they could not compete for national cotton reserves.

Those who are more dominant in the pricing of cotton will have a stronger supply and demand or will further boost cotton prices.

From the perspective of supply and demand structure, before the new cotton market comes into operation, the supply is mainly commercial stocks and 1 million tons of national cotton reserves to be put into operation, plus a small quantity of imported cotton. If we do not consider the quantity of cotton held by traders, there will be a gap of 400 thousand tons between total supply and demand, and domestic cotton prices will continue to strengthen.

In the medium to long term, from the middle of October, the new cotton market will be listed in China, and the situation of "having too many money" is likely to cause the cotton enterprises to rush to collect money. Cotton prices will remain strong.

Starting in January 2016, the cotton industry

On the low level, until the end of April, the number of industrial inventories did not increase significantly, reflecting that cotton textile enterprises already had the demand for replenishing raw materials before the national cotton mill came out, and the whole industry was in a state of "equal cooking". Therefore, the role of national cotton in the supply of cotton is very important.

From the early stage of the trend of Zheng cotton's disk, it is not difficult to find that once the amount of reserve cotton is reduced, the futures market will be reflected immediately, resulting in a tight supply situation.

It means that the factors affecting cotton prices at present are not entirely caused by

The more important reason is that the storage of cotton wheels has been running in a long way, resulting in insufficient supply.

Although the market calls for increasing the number of cotton reserves put into operation, and the national development and Reform Commission and the central cotton storage company have repeatedly stressed the need to protect the storage capacity and outgoing efficiency of the national cotton reserves, the actual results show that the daily number of inputs is still at a low level, and there is no policy signal to increase the total quantity.

The existence of domestic and foreign cotton price difference makes textile enterprises still have strong import demand, but from two indications, it is possible to predict the possibility of imported cotton rising in the future. First, the price of the COTLOOK index representing the international minimum cotton price has been flat with the price of imported cotton, that is to say, the price of domestic cotton imports has been relatively low in the world. Two, the recent improvement in US cotton exports has supported the rise of US cotton.

At the same time, due to the large difference in imported cotton: the price of cotton in Australia is too high, the short fiber in the US cotton (27mm), the horse value is low, and the turnover is not much; the recent price of India cotton has risen to 14000 yuan / ton, and the acceptance level of the textile mill is low.