Supply Is Broken And Cotton Prices Are Down.

"Originally planned to establish some virtual raw materials inventory in Zhengzhou cotton city, but the price of the watch was lower day by day, and the weakening trend was 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 recent years, and the sales prices of downstream products also showed signs of weakness.

Purchasing 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 paction 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 paction 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 paction 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?

Lu Xian futures business manager Zhou Dalong told reporters that from the analysis of the cotton inventory of textile enterprises, most textile enterprises have more than a month's production turnover inventory. According to the textile enterprise's operating rate and the downstream product sales situation, before the new cotton listing, some textile enterprises inventory cotton shortage, the domestic cotton market demand is still rigid and growth.

At present, textile enterprises are not actively bidding for national cotton reserves.

There was also a downward trend, mainly due to the prolonged sale time of the national cotton store and the optimism of the new cotton output and quality, which changed the market psychology. The most important thing was that the market lost the hype theme that the new cotton might be interrupted after the listing.

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 paction 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 conditions.

The growth is gratifying.

The relevant agencies estimated that the single yield and quality of new cotton were higher than last year, and the price of new cotton cotton was estimated to be 3.5 yuan per 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.