Mild Cotton Market Ushered In A General Rally.

Cotton spot resources in 2015/16 were depleted. Under the influence of the sharp rise in the bid price of zhengmian and national cotton auction, the cotton market in China has been rising and the mainstream price of cotton has been refreshed.

Especially in the support of high quality cotton gap, the spot price of Xinjiang cotton has exceeded 15000 yuan / ton, up 1500 yuan / ton compared with the beginning of May, or 12%.

Although the fundamentals of market supply and demand have not improved significantly, the high turnover rate, strong cotton futures and the supply gap in the new year have all become the "pushing hands" of the market.

It is expected that in the short term, the heat of market reserve cotton will not be reduced, and the volume of trading will continue to run at a high level. The basis of high position of lint cash is still in operation.

In July, the sale of new cotton was basically over in 2015/16, and the storage of cotton abroad basically became the only way to supply cotton resources in China.

It is estimated that a large number of Xinjiang cotton will go to the mainland market generally around November, while the dumping and storage will basically end at the end of August. There will be a blank period in the middle of the 2-3 months. The spinning enterprises are ready to complete the corresponding inventory at the current stage of dumping and storage. The current demand for reserves is not enough, and the early traders are running low inventory, and there are replenishment operations demand in the market.

From February

The low point broke $10000, and then to the 8 day of April, the 4 daily limit, which pushed the sluggish cotton market back to the top of the storm. Zheng Mian significantly increased the "pushing hand" role in the spot market.

In the first half of June, cotton's "slow bull market", although the spot volume was small, and the state store high paction overall showed strong and strong support. However, the cotton price in the off-season was short of the pull-up base. In the long and short game, the price of the cotton price increased at the end of June, especially in July.

"Weather factors and so on are flooded with various kinds of interests, which are very contrasting with the demand of spot market.

From the aspect of national cotton storage, it was launched in May 3rd.

Since then, the market has continued to sell at a high level. In May, the national cotton store kept a high turnover rate of over 97%, and at the end of May, 300 thousand tons of imported cotton were all sold out.

Since June, all of the national cotton stores have been put into domestic cotton, and the volume and paction price of national cotton stores also show some fluctuations, but turnover is still at a high level.

As of July 11th, the accumulative total of 1 million 240 thousand and 400 tons of cotton reserves was planned for 2015/16, and 1 million 214 thousand tons of accumulated warehouses were sold, with a turnover rate of 97.87%.

Among them, 917 thousand and 700 tons of domestic cotton were accumulated, and the turnover rate was 97.78%. The total import volume of imported cotton was 296 thousand and 300 tons, with a turnover rate of 98.16%, with an average paction length of 28.3mm, with an average price of 12479 yuan / ton and 776 turnover.

From the number of rounds to calculate, the initial export volume of the national cotton reserves can basically guarantee the level of 30 thousand tons per day, but with the elimination of problems such as outgoing and public inspection, the external volume has been reduced. Up to now, the average daily volume is about 24 thousand.

From the national reserve cotton sales base price, only two weeks the bottom price has slightly reduced.

At present (eleventh weeks), the reserve price of national reserve rose to 13053 yuan / ton, and the price difference between the first week and the first week was 1032 yuan / ton, and the quality resource increased significantly, the highest increase was 4400 yuan / ton, and the average paction price reached 14143 yuan / ton.

Under the current traditional off-season, the terminal spinning enterprise funds and finished product inventory sales are slow to restrict the competition of textile enterprises. At present, the participation of traders is relatively high.

It is understood that with the rising raw material prices, the profit margins of textile enterprises showed a significant decline.

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 not only has no profit but has a loss of 500-1000 yuan / ton, and the textile enterprises can only increase the price to compete for the national cotton reserves from the traders in order to complete the order, but the stock is slightly higher than that of the textile enterprises, and the most important thing is to digest the stock as the first place.