Bullish Atmosphere Strong Lint Spot Prices Rose Slightly

Although the market has shown a good state in recent days, the demand for cotton market remains weak, and the lint spot is temporarily unable to reverse the weak pattern. It is expected that the lint will continue to operate steadily in February.

Years later, Zheng cotton futures rose sharply, hitting 16000 yuan / ton mark, bringing the bullish atmosphere to the whole market.

Analysis of the reasons for the rise in cotton prices after the year is mainly due to the fact that the profit factor still plays a role.

The spot price of lint rose slightly, and the local rose was quite obvious.

First, the price of electronic disk rebounded, or brought good support for the lint spot market.

During the Spring Festival holiday, cotton and India cotton prices remained strong.

After the January 30th callback, the US cotton rose sharply for two consecutive days, reaching 76 cents per pound and 76.56 cents per pound.

India was pulled by American cotton. As of February 1st, India cotton MCX received 20590 rupees / bags, up 300 rupees / bags compared to the holidays.

Look at Zheng cotton, as of 3 days, Zheng cotton in the past 1703 contracts closed 15765 yuan / ton, up 175 yuan / ton.

Zheng cotton futures continued to rise, bringing good support for lint cash.

Second,

Some of the holding companies are still very high in price and limited in supply.

Before the Spring Festival holiday, some cotton ginning plants in various parts of the country have chosen to stop harvesting and reduce their income. The running rate of the cotton mill has been affected. The cotton stocks in the hands of the manufacturers are still relatively tight, and the current cotton ginning plants sell more lint for the pre processing source, resulting in high cost of processing, resulting in most of the price psychology of the ginning shops still remaining, and also restricting their falling space.

However, there are still more factors in the market.

First, after the Spring Festival, cotton and cotton producers will take stock of the mainstream.

There are only 1 months left from the 2017 national cotton store. The pressure of factory sales has been increasing.

At present, the pressure of cotton enterprises is very high. Some manufacturers have reduced the price of lint sales in order to speed up the withdrawal of funds, which has brought adverse effects to the lint market.

Second, the purchasing intention of spinning enterprises is ambiguous and suppressed.

Market.

At present, the cotton spot market is basically stagnant, and the domestic textile market is still in the doldrums. In order to attract orders and reduce inventory prices, the attitude of the downstream textile enterprises is not clear enough after the year, and the market wait-and-see mentality is dominant.

Third, the imported cotton yarn will continue to impact the domestic cotton yarn market.

Enthusiasm for buying goods has been reduced.

According to customs statistics, in December 2016, China imported about 201 thousand and 700 tons of cotton yarn, an increase of 8.29% over the same period last year, an increase of 12.79% in the ring ratio, and an export volume of about 31 thousand and 100 tons, an increase of 9.76% over the same period last year, an increase of 17.96% over the month.

In 2016 1-12, China imported 1 million 972 thousand and 300 tons of cotton yarn, a decrease of 15.9% compared with the same period last year. The total export of cotton yarn was 355 thousand and 200 tons, an increase of 4% over the same period last year.

Since the import of cotton yarn is much looser than that of cotton imports, there is no quota restriction and tariff is very low. In the case of foreign cotton can not be exported to China, cotton is likely to be pformed into cotton yarn exports to China, which will bring adverse effects to the domestic market.

During the long holidays of the Spring Festival, there was an increase in the resources of the warehouses in the mainland, and the imported cotton also arrived in succession. The overall resources were relatively abundant.

Affected by the rise in futures, spot prices generally rise 200-300 yuan / ton, cotton mills can accept the need to observe, in addition, the futures trend is also the key, if futures callbacks, spot prices will then be lowered, after 3 rounds, the demand for new cotton will be significantly reduced, at the end of March is also facing a loan withdrawal, spot sales pressure is obvious.

Compared with last year, 2 months ahead of schedule this year to start the reserve round, the impact on the market is noteworthy.

The processing enterprises within the border should rush to the mainland and seize the market after opening the session to make up the stock market. The repository should make the best choice of the futures delivery warehouse, which can be sold in the spot. When futures are available, they can also be arbitraged immediately.

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