Why Is Xinjiang Cotton Favored Only By Market Favours?

Domestic and foreign cotton prices "down" endless, put the floor price down.

Since May 15th, the domestic and foreign cotton prices have fallen substantially. The settlement price of the ICE main contract has dropped from 85.32 cents / pound in May 15th to 76.69 cents / pound in June 2nd, or 10.11%; and the price of zhengmian CF1709 has fallen from 16130 yuan / ton in May 15th to 15440 yuan / ton in June 2nd, a decrease of 4.28%, and the reserve price of cotton has been lowered.

The daily turnover of Xinjiang cotton increased and the turnover rate of cotton reserves increased.

Thirteenth weeks after the launch of the reserve cotton, except for the 29 thousand and 900 tons listed in May 31st, the remaining two days were more than 30 thousand tons.

Among them, the daily turnover of Xinjiang cotton is 10 thousand and 400 tons, 15 thousand and 100 tons and 15 thousand tons respectively. The daily turnover rate of cotton reserves is 69.94%, 65.65%, 70.94%, respectively, and the daily turnover rate is higher than that of twelfth weeks.

Xinjiang cotton has only been specially favors, and the turnover rate remains 100%.

From the reserve cotton paction resources, textile enterprises and traders still favor Xinjiang cotton, Xinjiang cotton turnover rate remains 100%.

From the annual cotton turnover situation, 2012 cotton turnover is 28 thousand and 400 tons, 2013 cotton turnover is 31 thousand and 200 tons, and 2011 cotton is real estate cotton, turnover is only 2 thousand and 300 tons, the paction situation is slightly insufficient.

Quality cotton and poor quality cotton match.

Cotton prices have dropped slightly in recent years, but the quality of Xinjiang cotton is still strong and basically stable.

Although the recent cotton yarn market is weak, the sales of 32S and combed 21S yarns are still good, and the opening rate of textile enterprises has not been greatly affected.

In the raw material market, some large cotton merchants have hoarded high-quality Xinjiang cotton, resulting in the lack of high-quality cotton resources in the market, resulting in cotton companies unable to buy good cotton.

Therefore, in order to ensure that

Good cotton can be used. It is suggested that the quality cotton and inferior quality cotton should be allocated in the process of storing cotton, so that the proportion of high-quality cotton can be more than 50%.

At present, the proportion of Xinjiang cotton imported from the national cotton store is reduced from 60% to 40%, and the number of Xinjiang cotton produced in the market is less than 2016 in.

Due to the requirements of production technology and spinning quality, spinning enterprises are more interested in the use of Xinjiang cotton. Therefore, the structural supply of Xinjiang cotton is tight. The proportion of Xinjiang cotton increased from 60% to 75% in the state store paction, and the difference from the real estate cotton price to nearly 1000 yuan / ton.

Although the futures prices continued to fall, but the market

Stable, the price of Xinjiang cotton in 2016 is stable between 16100 - 16500 yuan / ton.

From the author's research,

Although the inventory is higher than the previous year, but the overall moderate, relatively tight fund business inventory is low, only about 20 days, most of the enterprises in 1 - February.

At the same time, textile enterprises reflect that orders have not yet reached the level of deterioration, while downstream consumption has changed to varying degrees, but it will not collapse.

As of June 7th, Zheng cotton has generated 5764 warehouse receipts and forecasts, mainly Xinjiang cotton, accounting for 37% of the 1709 positions.

At present, futures discount spot is 700 yuan / ton, and spot price increases, so there is a certain support for short-term Zheng cotton price.

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