Cotton Spot Prices Continue To Plummet. Cotton Companies Are Looking Forward To "Rainy Weather."

On May 13-14, Zheng cotton two stop Downs (14 days limit to 7%), so that the internal cotton processing enterprises, traders (not guaranteed or not 100% sets of insurance) complain incessantly, and a few large and medium-sized cotton enterprises follow the Zheng cotton CF1909 contract to substantially reduce the quotations of "point price" resources. This is the same as the "cotton price" for the open cotton business. Therefore, on the 13-14 day, not only the "one price" lint has been greatly reduced, but also the "CF1909+ basis" offer is not much.

According to statistics, as of May 14th, Zheng cotton produced 19915 warehouse receipts plus 1260 effective forecasts, totaling 847 thousand tons of cotton, 73 thousand tons lower than the mid April high.

On the 14 day, the 3128/3129 class machine picked cotton (fracture strength 26.5-28cN/tex) in Urumqi, Kuitun and other regulatory libraries in Northern Xinjiang increased the price of public goods by 14400-14600 yuan / ton, and the "double 28" machine picked up the cotton pick-up price of 14700-14800 yuan / ton, and the "double 29" (including length 29mm and above, strong 29cN/tex and above, impurity 2.5% below) were quoted for 14900-15100 yuan / ton.

In southern Xinjiang, hand picked cotton, whether at "one price" or traders' "spot price" resources, is relatively small, and the 3128/3129 class (fracture strength 27-28cN/tex) regulation public treasury heavy delivery quotes are more than 15300 yuan / ton, and the turnover is relatively deserted.

Some local cotton enterprises indicated that Zheng cotton's CF1909 contract fell below 14000 yuan / ton key support position, mainly due to Sino US tariff increases, more single escape and stampede.

With the serious upside down of Cotton Futures (more than 1000 yuan / ton) and the risk warning letter issued by Zheng Shang, cotton prices gradually stabilized. Xinjiang cotton enterprises are expected to welcome spring after the storm.