Cotton Resources Are In Short Supply, Traders Are Not Soft.

Compared with the cumulative turnover of 63 thousand tons of cotton and the smallest turnover rate in 2015, the main reason for the "boom" of this paction is not only that the rules are more "grounded", but also more importantly, there is a big gap in the current market, and there will be a market where there is demand.

At present, domestic cotton market is in short supply, cotton prices continue to rise slightly, but this change is not entirely formed by the role of the market, but more influenced by some man-made rules.

Among them, the amount of cotton reserves and the qualifications of the buyers have become the two major focuses.

At present,

The daily volume is basically between 20 thousand tons and 30 thousand tons, which is different from the requirements announced before and the real demand of textile enterprises.

Judging from the purchase situation, the volume of traders and textile and cotton enterprises are equal to the amount of purchase, forming a competition. Compared with the "strong tyrants" traders with strong financial strength, textile entities are struggling to meet the costs of production raw materials, operation management, taxes and so on, and are also struggling to deal with interest payments on loans.

From the actual situation, traders purchase large quantities of goods and sell in batches, to some extent alleviate the financial difficulties of some small and medium-sized enterprises, but objectively formed a situation that they compete for resources with textile enterprises, drive up prices and gain more profit margins.

It has brought more pressure.

In addition, according to investigation and research, traders have already begun to buy goods in the domestic market before sitting on the reserve cotton, and wait for the benefit.

In this regard, it is suggested that the departments concerned be able to fulfil their commitments to ensure that no more than 50 thousand tons per day can be delivered, and adjust the relevant provisions as soon as possible in accordance with the current situation, temporarily stop the qualification of non production oriented enterprises to purchase cotton reserves, and ease the current situation of cotton enterprises' tension in cotton production.

Under the current special situation of "insufficient supply", domestic cotton

Taking the opportunity to form a wave of market, coupled with the expected global cotton production reduction and the current shortage of global cotton spot resources, ICE cotton prices and Zheng cotton pull each other up.

Up to July 11th, the price of domestic cotton has increased by nearly 20% compared with that before the reserve cotton was put into operation.

According to the market analysis, there is no lack of speculative phenomenon besides normal fluctuation factors.

Although the market parties have made suggestions for the healthy development of cotton and cotton textile industry chain, the relevant proposals have been put forward for some time, but up to now, the policy has not yet moved. The speculative momentum of the futures market has been increasing. It not only disturbs the order of the market, but also harms the interests of the textile entities, and interferes with the judgments of the relevant departments in formulating policies.

It is suggested to standardize market order, strictly supervise the speculation in futures market, and give full play to the function and role of futures market in serving the real economy, so as to maintain a good environment for survival and development for entities.

In the face of the opportunity to "destock", we hope that the state can fully consider the actual situation and postpone the delivery of reserve cotton to September or October, so as to solve the difficulties of spinning enterprises to use cotton. This is excellent.

From the perspective of current textile demand, on the one hand, the spot market gap in the domestic market will continue until the first ten days of 10, before the new cotton market will be listed in large quantities; on the other hand, there is not much surplus spot market in the international market. In Southeast Asian countries such as India, there is also a shortage of cotton and competition for resources.

If the import quota is not issued, the domestic textile enterprises purchase mainly cotton reserves. Therefore, for the national cotton reserves, at this stage, they already have the market conditions of "de Stocking".

Compared with India, which is unable to compete for imported cotton because of its empty state treasury, the "Heavenly Kingdom", which has a large amount of stock, should not let domestic textile enterprises cry because no cotton can be used.