Zheng Cotton Prices Are Low, There Are Signs That Cotton Prices Continue To Rise.

According to the US Department of agriculture report, as of the end of April, the total net export volume of US cotton reached 103% this year, supporting the international cotton price in the short term.

The CotlookA cotton price index has been on the upswing since the strong export of US cotton, which has risen nearly 15% so far.

In the later period, the export volume of the US cotton Limited was limited, and the support for the international cotton price was weakened.

Meanwhile, the US cotton planting area has increased significantly in the next year, which has put the market under pressure for a long time.

Affected by this, ICE disk recently high consolidation, the contract continued last Friday followed by a sharp decline in the internal market, CotlookA cotton price index also showed stagflation.

India, as at the end of April

The number of listed companies has reached 5 million tons, and the progress is ahead of the same period in 2014/15 and 2015/16.

After the Qingming Festival, the spot price of India S-6 ended for 5 months, and the rally began to fall.

Recently, with the new cotton volume, S-6 prices have dropped faster.

As of 8, the spot price of S-6 41800 rupee / candi, compared with the same period last week fell by nearly 1.2%.

Compared with the United States and India, domestic cotton

In late April, the 3128B cotton price index rose by 160 yuan / ton, and the selling price of the national reserve rose moderately after the eighth week's sharp rise of 217 yuan / ton. This week went to 15666 yuan / ton, up 308 yuan / ton compared with the first week.

From the perspective of the structure of reserve cotton, the proportion of Xinjiang cotton has dropped significantly in the near future, which will affect the enthusiasm of enterprises and the turnover rate of cotton reserves, which are related to the spot price trend of cotton.

Raw material prices are rising, and downstream products are not falling.

Thanks to rising raw material prices and the arrival of the textile peak season, China's yarn price index C32S rose significantly after the Spring Festival.

However, the price index began to fall from the end of March, and so far it has dropped by 210 yuan / ton.

According to statistics from relevant agencies, the stock of spinning cotton yarn has bottomed up in March, and has climbed to 21 days. The yarn stock index began to increase significantly in April; the pure cotton storage began to accumulate in the middle of March, and the stock available days have been nearly 22 days.

A slight rise, the price of yarn in the downstream steadily declined, coupled with the increase in yarn and grey fabric inventories, there were signs that cotton prices continued to rise.

According to the US Department of agriculture, there are 3 million tons of supply gap in China this year, accounting for nearly 900 thousand tons of import quotas, with an actual gap of 2 million 100 thousand tons.

According to the estimated volume of 30 thousand tons in 3-8 months and 126 trading days, the current round of reserve cotton production will not be less than 3 million 600 thousand tons. The reserve cotton can completely cover the supply gap, and the average daily turnover rate will be 60% to meet the market demand for cotton.

From the perspective of supply and demand pattern, domestic supply is quite loose unless there is a decline in the number of listed stocks and extreme weather.

In addition, the main cotton planting countries in the world, such as China, the United States and India, are expected to increase cotton planting area and bear long-term pressure on the market.

The May monthly report released by ICAC shows that the global cotton planting area in 2017/18 is expected to grow by 5%.

Among them, the three largest production areas in China, India and the United States increased by 3%, 7% and 12% respectively.

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