The Embarrassment Of "Three Pillars" In The Supply Of Cotton Market

Over the past month or so, the auction rate and the turnover price of state-owned cotton have become the focus of the market.

Analysis of its reasons can be found that in the downstream market demand is more stable, the market competition between various supply resources is intensifying. When the national cotton prices are higher, the import cotton and futures cotton will become the main purchasing object; and when the price of cotton is rising with the international cotton price, demand enterprises will reduce the price purchase behavior in the zhengmian City, and the sales of imported cotton will also decrease.

In the past May, the national cotton reserve plan came out of 568 thousand and 800 tons, with a turnover of 375 thousand and 700 tons, with a turnover rate of 66.1%, a decrease of 5 percentage points compared with April.

Since June, Zheng cotton and international cotton prices have stabilized, and the number of futures cotton has been increased. However, the price advantage of State Cotton stores is more obvious because of the reduction of the reserve price of national cotton auction, and the turnover rate of national cotton, especially real estate cotton, has increased significantly.

Ji Guang Po, executive deputy general manager of Shanghai international cotton trading center, believes that cotton is a strong trend variety. Zheng cotton has been listed for 13 years, showing strong trend and long cycle characteristics.

"Once the cotton market trend is formed, it is difficult to change, and the domestic cotton market is in a big upward trend.

From 1 to May this year, Zheng cotton's daily line is a trend of gradual uplift at the bottom. It is suggested that investors should not be short at the bottom. Based on the strong trend of Zheng cotton, it is expected that the probability of raising the bottom price in the future will be larger.

Ji Guang po said that from the average price of the national cotton auction sale, it has risen from 13000 yuan / ton last year to 15000 yuan / ton this year, which means that the market demand is relatively stable.

Told reporters that the difference between domestic and foreign cotton prices began to shrink in April this year, indicating that domestic cotton market demand is better, the current price difference is stable at 500 - 1000 yuan / ton.

It is worth noting that in late May, the relevant agencies issued a research report on Sino US economic and trade relations, saying that China is willing to further increase imports of agricultural products such as soybeans and cotton in the United States.

Because the supply gap of domestic cotton market is very large, the probability of China's imports of US cotton will grow faster in the future, and the increase in the number of imported cotton will inhibit domestic cotton prices.

At the beginning of this year's national cotton auction sale, because of the high price and good demand of downstream products, the profit of textile enterprises purchasing conventional cotton yarn for national cotton storage is 800 - 1000 yuan / ton, and the national cotton storage rate is higher.

Subsequently, in the case of lower product prices and orders reduction, the profits of textile enterprises were compressed, and now only 150 - 200 yuan / ton, plus futures cotton, imported cotton and imported yarn prices downward, the national cotton storage rate is naturally difficult to maintain at a high level.

"

The proportion of futures cotton is relatively large. From the aspect of quality and price of futures cotton, futures cotton is equivalent to Xinjiang cotton with slightly inferior circulation in the spot market.

After the comparison of sex price, demand enterprises purchase cotton futures mainly used to produce high count yarn. The purchase of national storage cotton is mainly used for producing medium and low grade yarn.

It mainly depends on the profit level of the products produced. "

Zhou Dalong said.

Another reporter has learned that the new year's global cotton planting area has increased quite a lot. Due to the suitable weather in the producing area, the new cotton output and the total output are expected to be optimistic.

At present, cotton cultivation in the main cotton producing countries of the northern hemisphere is progressing smoothly. For example, the progress of US cotton sowing is not only higher than that of the same period last year, but also higher than the average of nearly 5 years. The planting of cotton in northern India has basically ended.

From the domestic perspective, cotton cultivation in Xinjiang has ended, and cotton in Turpan and other places has entered the bud stage.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.