Long Staple Cotton Trend Or Maintain Strong Market Brings Positive Atmosphere.

Recently, the quality of long staple cotton has increased rapidly, and the price of cotton is higher than that of cotton. It is understood that in 2016, the output of Xinjiang long staple cotton was about 200 thousand tons, while the domestic long staple cotton consumption was 13-14 tons per year. Then 6-7 tons of long staple cotton will be transferred to the next year. However, the structural supply and demand imbalance of domestic long staple cotton is still in the near future. The quality of long staple cotton is higher than that of high quality yarn enterprises in the mainland. The supply of high-quality long staple cotton is relatively scarce, and the cotton prices in recent years to Hong Kong and Macau are obviously lower than those of medium and low quality long staple cotton. Many textile enterprises use high-quality Australian cotton instead of low quality long staple cotton. That is to say, the supply of quality staple cotton with grade 137 and above is still tight, and the middle and low quality long staple cotton is facing the situation of oversupply and difficult trading.

Recently, however, the market has been optimistic about the trend of long staple cotton prices. The main reasons are:

1. In 2017, the sown area of long staple cotton decreased significantly. According to feedback from cotton farmers in Akesu and Kashi, the area of long staple cotton is less than 1 million 200 thousand mu this year, with an estimated output of 10-10.5 million tons, and supply and demand gap of 3.5-4 million tons. Therefore, the industry believes that the supply of 2017/18 long staple cotton will be changed a little loose and become a little tight.

2, fine cotton prices are strong, partial rise. Recently, the price of fine wool cotton in the mainland, especially Xinjiang cotton, has increased considerably. As of 9 days, Henan, Zhengzhou, Shandong and Dezhou have "double 29" and "double 30". Xinjiang The price of hand picked cotton reached 16700-16900 yuan / ton (delivery price), which rose by 400 yuan / ton compared with the beginning of this week. It is expected that the trend of long staple cotton will continue to be strong in the near future, and the quality or quality of long staple cotton will continue to rise, which will bring favorable atmosphere to the whole market.

　　 Zheng cotton The contracts fell sharply, the proportion of Xinjiang cotton in the resources of the reserve cotton wheel dropped, and the reserve cotton in the mainland's "two sale" increased significantly. Affected by the impact, the spot quotation of cotton in the whole region has stabilized. Although the price of high-quality cotton has not yet been brought back, the wait-and-see mood of buyers and sellers has risen.

At present, the number of high-quality cotton in the regulatory database is becoming less and less, and traders are hoarding. Cotton resources The main body. The pressure of ginning mills is generally not large, and they are not eager to pocket bags for safety. They are still looking forward to the increase in cotton prices in 5 and June. However, Zheng cotton CF1709 contract broke 15800 yuan / ton, a 4.2% decline compared with the April 27th high. Therefore, the enthusiasm of the hedge traders' "flat air and spot sale" increased again, and had some impact on cotton prices. A cotton trader in Akesu said that although some cotton traders "double 28/ double 29" hand picked cotton price quoted at 16200-16500 yuan / ton (gross weight), but some were too high, the actual transaction price fell 150-200 yuan / ton.

According to the cotton monitoring database in Akesu, Bachu and Kuitun in Northern Xinjiang, since the early May, although the cost of road transportation has remained stable, the volume of transportation has not been improved. Since the end of April, the spot price of high quality cotton has increased significantly faster than the mainland, and the "double 28/ double 29" Southern Xinjiang hand picked cotton price difference is only 100-200 yuan / ton (500 yuan / ton outbound transportation subsidy, the transport side should pay at least 350 yuan / ton), and the enthusiasm of traders to move warehouse sales declined.

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