Xinjiang Cotton Shipments Lower Than Expected Prices Fall Risk

It is understood that the current cotton "spot price" volume is still significantly less than expected, buyers and sellers are watching the market.

At present, the cotton price difference between Brazil cotton and India cotton sold at ports is maintained at 1000 yuan / ton, and the "double 28/ double 29" (including 3128/2128 grade, fracture strength 27CN/tex and above) of high-quality Xinjiang cotton inquiry and paction also show a downward trend, while the low horse value, low breaking strength ratio, length less than 27mm and impurities too big lint are also blocked.

The cotton Logistics Association of China Cotton Association surveyed 186 cotton deliveries and regulatory warehouses in 18 provinces and municipalities nationwide. As of the end of February, the national cotton turnover inventory was 4 million 260 thousand and 800 tons, a decrease of 102 thousand and 700 tons from the previous month, of which 42 warehouses in Xinjiang area were 3 million 767 thousand and 600 tons of commodity cotton turnover, representing an increase of 954 thousand and 400 tons over the same period last year.

Taking into account the reduction of the value-added tax rate of the pport industry in April 1st, some cotton enterprises postponed the cotton road and railway in March. In March, Brazil cotton and India cotton signed a more active import contract. Therefore, it is estimated that the turnover of commodity cotton turnover within the territory is still higher than 3 million 500 thousand tons at the end of March, and the pressure on the storage capacity of each regulatory warehouse has not been alleviated significantly.

The ginning factories in Akesu and Korla indicated that the sale of high quality hand picked cotton in the southern Xinjiang has been showing signs of decline since a week ago. The machine picked cotton in southern Xinjiang is still not favored by textile mills and traders. The pressure of some cotton shops for sale is higher than that in 2/3 months.

And the low horse value, high impurity and low strength machine picked cotton in Northern Xinjiang is also in a state of being unsalable. If the short-term CF1905 contract can not exceed 15500 yuan per ton, then the spot price of cotton will be weak and callback.