Overall Decline In Cotton Prices, Cotton Yarn Profit Trend Tends To Rise

Cotton market has been very hot this year.

In the case of continuous dumping and storage, the market is still out of a wave of rising prices, mainly due to the shortage of market spot and the resonance result of poor storage.

The dumping and storage in the remaining time will be particularly important for the subsequent market.

Cotton is undoubtedly a bright star this year.

At the end of February, after 1 months of innovation, the consolidation took place for the first time in the first half of April. In the early April, due to the delay of throwing storage time, the commercial inventory caused by superimposed reduction was low, triggering market take-off.

Even if confirmed.

And detailed rules, cotton is only a little callback, then uplink.

Next year, China's cotton will continue to cut production, plus the impact of the turn round, the market supply will be further reduced.

Considering the reduction of production, rotation and seasonality, cotton is expected to be better in the far months. Investors can configure cotton bulls at the appropriate price as hedging, and should avoid the policy risks brought about by the next year.

Cotton is undoubtedly a bright star this year.

At the end of February, after 1 months of innovation, the consolidation took place for the first time in the first half of April. In the early April, due to the delay of throwing storage time, the commercial inventory caused by superimposed reduction was low, triggering market take-off.

Even if we confirm the time and details of the dumping,

Only a few callbacks will go up again.

From the tight spot to the important fundamentals, it supports the rise of spot price and futures price, and the rise of both increases the price of dumping and storage, and because of the lack of spot, the turnover rate is high, and also promotes the rise of spot and futures. At this point, a price pmission path is completed.

Recently, downstream textile enterprises have frequently increased textile prices, and prices have been better downstream than earlier ones, and the pressure from downstream enterprises has weakened.

In the course of throwing and storing, if the dumping is not allowed and the positive feedback on the fundamentals is good enough, cotton is still not weakening.

Tightening from spot to important fundamentals supports spot prices.

The rise of both prices has pushed up the price of dumping and storage, and because of the lack of cash, the turnover rate has remained high, which has promoted the rise of spot and futures. So far, a price pmission path has been completed.

Recently, downstream textile enterprises have frequently increased textile prices, and prices have been better downstream than earlier ones, and the pressure from downstream enterprises has weakened.

In the course of throwing and storing, if the dumping is not allowed and the positive feedback on the fundamentals is good enough, cotton is still not weakening.

China has been reducing production for 4 consecutive years since the beginning of 2012/13, and for the 2016/17 production forecast, it will still be a year of reduction.

On the supply side, the total cotton output in 2016/17 is estimated at 4 million 470 thousand tons.

And imports, due to the impact of this year's policy of dumping, or will decrease slightly, estimate the import volume of 2016/17 annual import of 900 thousand tons (WTO[micro-blog] import volume of 89.4, 1% tariff).

Therefore, the total supply of 2016/17 is expected to be 5 million 370 thousand tons.

On the consumer side, consumption is projected to be 6 million 890 thousand tonnes in the next year.

Compared with the supply gap of 1 million 420 thousand tons in 2015/16, the supply gap in 2016/17 expanded further from 130 thousand tons to 1 million 550 thousand tons.