High Quality Cotton Resources Are Still In Short Supply. Structural Contradiction Between Supply And Demand Is Still Outstanding.

Recently, drought is serious in cotton fields in China.

Drought occurred in Xinjiang and accompanied by strong wind. The emergence rate of cotton seedlings was low, and the effect of pplanting and seeding in late stage was not good. The problem of continuous cropping in some areas was prominent, resulting in more serious cotton diseases and insect pests, and yellow wilt disease. The drought in the the Yellow River River Basin was also serious, and the growth of cotton seedlings in some areas was limited.

Output is also more pessimistic.

Cotton spot prices fell slightly.

As of June 5th, Xinjiang, Akesu, Kashi and other places "double 28", 3128 grade Xinjiang pick cotton picking price 16000 yuan / ton, 15800 yuan / ton, the center of gravity fell slightly 100 yuan / ton.

Mainland Shandong, Hebei and other places, "double 28" reserve Xinjiang cotton price 16400 yuan / ton line, "double 29", "double 30" Xinjiang hand picked cotton price 16800-16900 yuan / ton line, the actual paction has 50-100 yuan / ton concessions.

The reserve price of cotton reserves has been lowered.

In 2016/17, fourteenth weeks (5-9 June) of reserve cotton came out. The reserve price of cotton reserves was 15559 yuan / ton, and 45 yuan / ton lower than thirteenth weeks.

Last week (31-6 May, 2), the average price of the 2 trading days fell during the 3 trading days of the reserve cotton, and the average paction price rose only on 1 trading days, and the increase was not enough to make up for the decline.

Rich.

Zheng cotton futures oscillations fell.

As of June 2nd, Zheng cotton main CF1709 contract closed at 15385 yuan / ton, compared with the previous trading day settlement price fell 20 yuan / ton, compared with May 26th closing price fell 310 yuan / ton.

At present, Zheng cotton has fallen below the low point of mid May, but there is no obvious change in the market turn over operation. The air atmosphere is still strong, which also gives the spot a strong pessimistic atmosphere.

In recent years, domestic cotton spot is generally weakening, high quality cotton resources are still scarce, and the structural contradiction between supply and demand is still outstanding.

Downstream demand is weak.

In the near future, except for air spinning 10-16S and general comb 32S, all other cotton yarns are "reduced in price".

According to feedback from a factory in Shandong, as of June 5th, the price of combs 21S, 32S and 40S was 22000 yuan / ton, 23100 yuan / ton, 24500 yuan / ton, down 100 yuan / ton compared with last Friday, and the actual paction yield concessions 50-100 yuan / ton.

Many textile enterprises said that the current high price of cotton is difficult to accept, spinning enterprises to minimize raw material inventory, cotton yarn into the off-season, spinning enterprises by reducing prices to attract orders.

At present, high-quality cotton is still in short supply.

Turnover rate remained 100%, increased by 1000 yuan / ton.

Spot quality Xinjiang cotton has been accumulated by a few large cotton traders. High quality cotton prices are difficult to change in the short term. The structural contradiction between supply and demand of cotton in China is still outstanding. It is expected that cotton will be stable or weak in the near future, and the possibility of a big rise or fall will not be great.

The supply of cotton is relatively large this year. Commercial stocks, reserve cotton and imported cotton have more market supply. Recently, the price of cotton has also been lowered due to the fall in the price of Zheng cotton.

Downstream consumption side, the arrival of the off-season, downstream textile mill procurement enthusiasm weakened, spinning enterprises orders decline, profit margins narrowed.

The overall supply of cotton resources is still more, from a single volume is still at a high level, Zheng cotton fundamentals are weak.

Zheng cotton fell to the current price. It is expected that the concussion in the short term may still be large.

It is suggested that after the bounce end, it is built from the empty list, the high altitude and the low level, and the rolling operation.

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