Supply Disappearance Theme Disappeared Cotton Prices Are Now Down

　 　 National cotton reserves The selling period is prolonged, and the mentality of middleman stockpiling is weakened.

"Originally planned to build some virtual in Zhengzhou cotton city. raw material Inventory, but the price is lower day by day, and the weakening trend is obvious. The company decided to postpone the execution time of the hedging plan, and when to enter the market to stabilize the market after that. Zheng Zhijun, a textile trader in Nantong, Jiangsu, told reporters that the spot cotton prices both declined in the near future, and the sales prices of downstream products also showed signs of weakness. Moreover, the order quantity of textile enterprises was not as fast as that of the early stage. cotton Tends to be cautious.

In the first week of August, the number of daily output of the national cotton kept at 30 thousand tons, but the turnover rate and the transaction price went down together. When CHW stored 150 thousand and 200 tons of cotton, the total turnover was 85 thousand and 600 tons, with a turnover rate of 56.99%. Before that, the national cotton mill came out basically 100%. When Zhou cotton storage rate reached a new low, the average transaction price was 13904 yuan / ton, a decrease of 908 yuan / ton compared with the previous week. In the second weeks since August, the turnover rate and transaction price of the national cotton store are still showing a downward trend.

At present, although the growth of new cotton is better in China, the market is expected to have an optimistic yield. But there are nearly two months from the new cotton listing. Before the new cotton listing, the supply of domestic cotton market is still relatively tight. But why is the national cotton store "suddenly" no one wants it? Why cotton prices suddenly did not rise?

Zhou Dalong, the business manager of the Ministry of agricultural products, told reporters that, from the analysis of the cotton stock in the textile enterprises, most textile enterprises have a production turnover inventory for more than a month. According to the start rate of textile enterprises and the sales situation of the downstream products, some textile enterprises are not in stock before the new cotton market is listed, and the domestic cotton market demand is still rigid and growing. At present, textile enterprises do not actively bid for national cotton reserves, and domestic cotton prices also have a downward trend. The main reason is that the sale time of the national cotton store has been extended for one month, and the new cotton output and quality expectations are optimistic, which has changed the market psychology. The most important thing is to let the market lose the hype theme that may be interrupted after the new cotton market is supplied.

According to the reporter's understanding, the relevant agencies have decided that the time of the national cotton storage rotation will be extended to September 30th, which is one month later than the original plan. This means that the supply of more than 660 thousand tons of cotton will be supplied to the market, which will meet the needs of the domestic cotton market before the new cotton market.

"The cotton market psychology in the domestic cotton market changed rapidly after the news of the prolonged arrival of the national cotton store. First of all, the theme of market speculation is gone, followed by the market bullish mentality is not, finally, the large and medium-sized Cotton Traders bid for national storage cotton and the phenomenon of hoarding is less, especially a lot of traders began to actively export, so that the pressure of market supply increased a lot. Zhou Dalong said, textile enterprises wait-and-see, the middle traders do not participate actively, the national cotton store rotation rate and transaction price must decline.

Reporters learned in some textile enterprises, in addition to not having to worry about the market supply interruption and reduce the amount of cotton procurement, many textile enterprises do not have a large number of hoarding cotton is also very much related to the growth of new cotton. At present, cotton production areas in China generally have good weather and cotton growth is gratifying. The estimated output and quality of new cotton are higher than that of last year, and the new seed cotton price is estimated at 3.5 yuan / Jin. At present, many textile enterprises are looking forward to the new cotton market. The market expects new cotton production to be high and quality is good, and the textile enterprises are worried about the late market supply and the rise of cotton prices.

Zhou Dalong believes that from the global and domestic cotton market supply and demand balance analysis, the domestic cotton market supply tightening trend has not changed, the domestic cotton production shortage and the current international market cotton prices remain rising trend will always boost domestic cotton prices, the current domestic cotton prices decline and adequate supply may be temporary, cotton and other cotton enterprises should have a clear understanding of this.