China'S Cotton Prices Remain Slow In The Next Year When China Signs A Large Number Of Contracts.

According to the price monitoring of the business community, the average price of lint 3128B lint in the domestic spot market was 15631 yuan / ton as of April 8, 2019, and the price rose 9 yuan / ton over last Monday, up 149 yuan / ton compared with last year, or 0.96%.

Recently, China has been actively buying imported cotton, the US cotton intends to boost prices, domestic cotton spot prices are strong, and the overall trend is rising slowly.

In April 8th, the 1909 contract of zhengmian main contract closed at 15745 yuan / ton, up 110 yuan / ton, or 0.70%, compared with the previous trading day.

By the end of April 8th, the number of 2 cotton futures contracts that NYBOT could deliver was 34293 packages, which was 189 less than last Monday.

Owing to weather reasons, the output and quality of Australian cotton in 2019 may decline sharply.

In order to meet the needs of high-grade export orders, some domestic spinning and weaving enterprises in order to ensure stable and timely delivery of products, they signed a large number of high-quality high-grade cotton products similar to that of 2019/20 cotton in Australia.

According to the latest US cotton export weekly, on March 2019 22-28, the net contract volume of US cotton exports in 2018/19 was 73 thousand tons, an increase of 47% over the previous week, a significant increase over the previous four weeks, and 13 thousand and 400 new tons in China.

According to the data in March, Australia and Brazil accounted for 27% of China's imports in February, while the United States ranked fifth, accounting for only 8%, and imports of raw cotton increased to nearly 1 million 268 thousand tons in the first 7 months.

In 2017/18, the United States is China's largest supplier, accounting for 45% of China's imports, and the impact of Sino US trade war is still evident.

On the other hand, according to the report released by the US Department of agriculture in late March, the US cotton planting area was 13 million 800 thousand acres in 2019, a decrease of 2% compared with the same period last year, far below the market expected 1410-1550 acres.

The largest production area in Texas and Georgia decreased by nearly 6% over the same period last year.

The India Cotton Association said that India's cotton production decreased by 10-12% this year. In recent weeks, the number of new cotton imports in India has been significantly reduced. In April 2nd, only 75 thousand packages were listed, far below the 135 thousand package in the same period last year.

India cotton prices continue to rise, will continue to maintain a strong trend in the future.

Domestic cotton yarn, prices are basically stable, confidence in price is not enough.

By the end of April 8th, the average price of single cotton yarn of 21S high quality knitted top quality products in Shandong area was 23280 yuan / ton, up 100 yuan / ton compared with last Monday, and the average price of 32S single cotton yarn with high quality knitted fabrics was 24120 yuan / ton, and the price remained stable.

Because of the reduction in cotton production in India and the overall rise in international cotton prices, the mills want to raise prices to offset the loss of profits.

However, the downstream enterprises have resisted the price of cotton yarn, and the yarn mill's confidence is not enough.

With the seasonal demand and the increase of cotton yarn output, the cotton mill should appropriately raise the price of some specifications cotton yarn and maintain profits.

Business analysts believe that although the international cotton price has improved in March, the quotation of imported cotton is still very attractive compared with domestic cotton quotations.

Domestic cotton price competitiveness has always been slightly weaker, and prices have been rising slowly and not much.

The price of cotton yarn in the lower reaches is weak, and imported raw materials become the main force in the market.

There is no big change in domestic stock market, and it is rising slowly and steadily.

However, market rumors may increase cotton import quotas, and the effective period will be extended until the end of March 2020. It is not ruled out that some manufacturers may make profits and increase the possibility of shipping.