What Are The Reasons For The Falling Prices Of Long Staple Cotton?

Over the past week, long staple cotton has opened up a downward path.

As of December 30th, Xinjiang Akesu cotton seed purchase price fell to 7.40-7.55 yuan / kg (lint 32%, regain 10%), compared with yesterday continued to drop 0.50 yuan / kg, compared with last Friday, a total decline of 0.25-0.30 yuan / kg.

Recently, long staple cotton seed cotton has the following characteristics:

First, the number is small.

The industry estimated that as far as the end of December, the acquisition of long staple cotton was about 90%, and cotton growers in recent years were only selling sporadically.

According to the current progress, it is expected that the acquisition can be concluded in early January 2017.

Second, quality drops.

Most of the cotton remaining in the remaining cotton growers is after the frost, after the snow, the maturity is not enough, the fiber is short, the horse is low and the impurities are much.

According to the ginning factory, few enterprises are interested in the newly harvested seed cotton.

Third, cost rise.

In December 30th, the head of an enterprise in Awati County said that the price of long staple cottonseed cottonseed fell rapidly. The loading price 2.37-2.38 yuan / kg on that day dropped 0.01 yuan / kg compared with yesterday, and has fallen 0.05 yuan / kg since this week.

In addition, the factory processing long staple cotton should increase manual selection of "three wire" and stacking, all of which will enhance the cost of long staple cotton.

"Now it's getting worse and worse, so many businesses stop collecting."

In December 30th, the head of an enterprise in Awati said that the price of long staple cotton fell in recent years, for many reasons:

1, the periphery will turn from strong to weak, and long staple cotton will be impacted.

Recently, the price of fine wool cotton fluctuated greatly, and the spot price dropped 200-300 yuan / ton this week.

Take Xinjiang hand picked cotton as an example, in December 30th, Shandong, Jiangsu and other places, "double 28" and "double 29" prices were 16200-16300 yuan / ton.

Up to now, the price of long staple cotton and fine cotton is about 5000 yuan / ton.

It is understood that since the beginning of this year, the price difference of long staple cotton fine staple cotton has been maintained at 5000-6000 yuan / ton.

Most of the cotton with fine staple cotton resonate at the same wavelength, but the fine staple cotton decreases and the long staple cotton decreases.

2, the mainland is well supplied.

With the end of Xinjiang fruit and chemical products Sinop,

Speed up the development of Xinjiang.

According to the feedback from many mainland enterprises, the supply of long staple cotton in the mainland is adequate in the near future.

3. Combed high count yarn

Weaker.

Recent combed yarn market is weak, textile enterprises said that the current order is still dominated by old customers, and the order of old customers also has a downward trend.

To sum up, the long staple cotton market is easy to fall and rise in the short term, but the possibility of a big drop is not great.

The most important thing is cost support. At present, the basic cost of long staple cotton is upside down.

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As the price of Zheng cotton plummeted, the spot price of Xinjiang cotton also dropped, and the "double 28" hand picked cotton wool price quotations fell to 15200-15400 yuan / ton in the southern Xinjiang platform. The "double 29/ double 30" cotton price quotations fell to 15500-15600 yuan / ton in North Xinjiang, and the price of the mainland lint was also reduced in recent days.

The price of lint is down, and the purchasing enthusiasm of textile mills is general.

December is the peak period for the import of foreign cotton. It is estimated that the import volume will be more than ten million tons in December. In addition, Xinjiang cotton is expected to pport 40-50 tons in December, plus real estate cotton. Therefore, it is expected that in the late December and early January, there will be abundant cotton resources in the mainland and the spot price of lint will easily fall.

In March of next year, we will start throwing stores. On the one hand, there will be pressure on the market in terms of supply. On the other hand, the reserve price will be taken as the base price of the cotton price difference between inside and outside cotton. When the lower cotton price will lower the average price of the market, the reserve cotton will also have a certain pressure on the cotton price in the future market.

In the short term, Zheng cotton also lacks upward momentum, so the whole cotton price shock is weak in the whole.

At present, the main contract of Zheng cotton has been adjusted after the crash, and the supporting role of the price near 14600 is relatively large. It is recommended that every warehouse should be empty and pay attention to market funds.

For more information, please pay attention to the world clothing shoes and hats net report.