Xinjiang Cotton Goes Out Of Xinjiang, And The Mainland Textile Enterprises Are Actively Cleaning Up Goods.

In the early days, Zheng cotton futures were more volatile and had a certain impact on the spot. However, after the substantial decline of Zheng cotton futures, the spot went out of its own market. Almost two months later, the spot price was basically the price of the futures price. But with the sharp rise of the double 11 futures, the spot price was once futures, and as the futures rose, there was a certain increase in spot prices, but the increase was far less than that of the futures market.

On the other day, Zheng cotton futures plunged sharply, but the spot movement was not very large. At least there was no large area of price adjustment. Instead, some traders offered strong quotations and even raised prices.

Why does the fundamentals become strong? Recently, textile enterprises actively replenishment and Xinjiang cotton out of Xinjiang are difficult to support cotton price rise. It is expected that in the short term, Zheng cotton will have a strong trend of turbulence.

It can be seen that after October, the overall inventory of cotton enterprises has been on the downlink. At that time, considering the stock of spot stocks and cotton, the new cotton prices were also high.

However, as time goes on, cotton reserves are gradually consumed, and there are not many commercial stocks left. In late 11, cotton stocks in textile enterprises have reached relatively low positions.

However, because of the general demand for yarn in the downstream, yarn stock has increased, so even if there is no need to use new cotton, there will be too much demand for stock.

In contrast to the above table, we can see that on the basis of the overall reduction in output last year, we expected high production this year, but this year the progress of public inspection is not as good as that of last year.

And later tracking new cotton situation, may not be as optimistic as early, Xinjiang production less than expected.

There has been a certain amount of new cotton inspection, but the reason why the price is difficult recently is the pportation problem of Xinjiang.

Due to the centralized listing of fruits and vegetables in Xinjiang and the special green channel for pportation, the pport drivers choose more fruits and vegetables for pportation, resulting in difficulties in cotton outbound pportation, and freight rates continue to rise. Up to now, Henan has risen to more than 1000 yuan / ton, up 100-200 yuan / ton compared with the beginning of the month, and the tension of motor vehicles may continue until the end of November.

Railway pportation has been carrying out electrolytic aluminum because of policy factors, making railway pportation difficult before the new year.

There are obvious tensions in the two ways, so there are few new cotton stocks in the mainland, and the demand of the mainland enterprises is gradually reflected. The price of motor vehicles will probably rise in the near future.

To sum up the three factors, that is, the impact of the current cotton market factors, in the short term, spot prices may still be strong, with the late Xinjiang shipping progress, new cotton supply increased, after December, spot prices may be weak.

At present, textile enterprises actively purchase imported cotton and national stored cotton, and the amount of imported cotton and national cotton reserves gradually decreases, and procurement difficulty increases.

Upstream ginning plants focus on the futures market and start a large number of warehouse positions when the price is right. The recent effective warehouse receipts forecast is increasing. Now many enterprises consider setting up positions in the 1705 contract. At that time, pportation will no longer be a problem, and freight rates will also drop sharply.