Good Show That Zheng Cotton Is Easy To Rise And Fall In The Near Future.

Domestic textile enterprises will soon enter the peak season of traditional processing, and the willingness to replenishment will gradually strengthen, and the downstream textile boom index will pick up.

Under the background of the smooth progress of Sino US trade negotiations, the downstream exports can be warmer.

From the technical point of view, Zheng cotton market below the strong support.

After the Qingming Festival, the Sino US cotton entered the seeding stage. The United States released its intention planting area in 2019. The Sino US trade negotiations progressed smoothly, the US cotton export data were strong, the domestic lint processing rate increased year by year, and the downstream textile prosperity index rebounded slightly.

US cotton double good show

According to the report released by the US Department of agriculture in March 29th, the US cotton planting area was 13 million 800 thousand acres in 2019, a decrease of 2% over the same period last year, far below the market expected 14 million 100 thousand - 15 million 500 thousand acres.

Among them, the land cotton area is 13 million 525 thousand acres, a decrease of 2.3% compared with that of the previous year, and the area of Pima cotton was 255 thousand acres, an increase of 2.4% over the same period last year.

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

The US Department of agriculture report shows that from 22 to 28 March 2019, the net contract volume of US cotton exports in 2018/2019 was 73 thousand tons, an increase of 47% over the previous week, a significant increase over the previous four weeks. The new signing came mainly from Vietnam, China and so on, of which China signed 13 thousand and 400 tons.

The net export volume of cotton in the US 2019/2020 was 34 thousand and 300 tons, and the new signing came mainly from China, which was 26 thousand and 700 tons.

National lint processing rate increased year on year

The national cotton market monitoring system survey data show that as of April 4th, the national processing rate was 98.4%, an increase of 1 percentage points over the same period last year, representing an increase of 0.3 percentage points over the past four years, of which 100% of Xinjiang's processing rate and 59.8% of the national sales rate, 0.6 percentage points lower than the previous year, were 8.6 percentage points lower than the past four years, and the Xinjiang sales rate was 58.3%.

According to the estimated 6 million 75 thousand tons of cotton production in 2018 (the national cotton market monitoring system forecast in November 2018), the total sales of seed cotton and lint cotton 6 million 21 thousand tons decreased by 3 thousand tons compared with the same period last year, representing an average increase of 479 thousand tons over the past four years, including 5 million 10 thousand tons of cotton seed sold in Xinjiang in the past four years, 5 million 922 thousand tons of cotton seed processing and 55 thousand tons year-on-year, an increase of 549 thousand tons over the past four years, of which 549 thousand tons of cotton lint were processed in Xinjiang, and a total of 18 tons of cotton lint sold in the past year.

Keqiao textile index rose slightly in March

In March 2019, the Keqiao textile index total prosperity index closed at 1214.14 points, a rise of 0.01%, up 0.01% from the beginning of the year, down 15.80% from the same period last year.

The total market circulation index closed at 1110.86 points, down 0.04%.

In March, weaving factories and markets were more optimistic about the market after the Spring Festival, and manufacturers had higher enthusiasm for production. Traders also had stockpiling operations.

However, the market demand has not reached the expected effect. The price of textile market has dropped slightly, and the demand for domestic demand has been shrinking.

The total production boom index closed at 1290.15 points, rising 0.76%.

Enterprise production orders rebounded, in March, some textile printing and dyeing enterprises began to pick up locally, production and sales increased, and the output of some enterprises in Binhai printing and dyeing gathering area increased.

The business climate index is rising.

To sum up, the recent international cotton market is much more basic, and the trend of Zheng cotton will focus on downstream demand.

Domestic textile enterprises will soon enter the peak season of traditional processing, and the willingness to replenishment will gradually strengthen, and the downstream textile boom index will pick up.

Under the background of the smooth progress of Sino US trade negotiations, the downstream exports can be warmer.

At the same time, China and the United States are entering the cotton planting period, during which weather will become a key factor affecting the market of Zhengzhou cotton.

From the technical point of view, Zheng cotton market below the strong support.