Hengshui: Great Changes In The Cotton Market

This year Hebei Hengshui area cotton sowing area of 50 million mu, a slight increase compared with 2018.

Because of the better seedling condition, most cotton growers are expected to increase production, but most cotton growers do not expect to increase their production this year.

A cotton farmer named Li said that the price of seed cotton has been hovering around 3.2-3.5 yuan / Jin recently, and it is expected that this year will exceed 4 yuan / Jin.

Affected by the deterioration of Sino US negotiations, since May 13th, the whole market has encountered great difficulties. First, Zheng cotton plummeted. On the 13-14 day, Zheng cotton fell for 4.02% days and 7.03% days for 2 consecutive days.

Two is the ICE cotton drop, 13 days ICE cotton limit, July contract 65.45 cents / pound, down 300 points, 14 days of ICE cotton plate continued inertia decline and new low.

On the 15 day, although Zheng cotton rebounded, the pessimism was still strong.

The three is the fall of Xinjiang cotton. The Xinjiang 3128/3129 class machine picked cotton is 14400-14600 yuan / ton (public weight, delivery, the same below), "double 28" machine picked cotton 14700-14800 yuan / ton, "double 29" machine picked cotton 14900-15100 yuan / ton, compared with 13 days fell 200-300 yuan / ton.

Influenced by the market, various subjects in Hebei and Hengshui are different.

First, cotton farmers have a peace of mind.

Despite all the sadness at home and abroad, the main task of cotton growers is to increase their yields and ensure quality so that they can sell at a good price. Therefore, we should keep an eye on the market and intensify our field work.

Two, cotton enterprises are nervous.

Individual cotton enterprises still have a small amount of cotton in hand. 13 days, the 3 grade lint price in Hengshui dropped to 14900 yuan / ton (gross weight, pick up), 4 level 14400 yuan / ton, down 300 yuan / ton, and there was no deal in the near future, the enterprise was worried about "smashing" hands, many cotton enterprises did electronic disk business, and Zheng Mianda fell and made many cotton enterprises suffer heavy losses.

Therefore, most cotton enterprises have backed away from this year's scale purchase, and some of them intend to go to the Xinjiang package factory.

Three, textile enterprises and traders suspend the purchase of raw materials.

As the market plummeted, and whether the Sino US trade negotiations could take a turn for the better, most textile enterprises and traders were cautious about bidding for cotton reserves, and spot procurement of cotton was suspended.

A textile enterprise official said, downstream enterprises export pressure is more and more big, cotton yarn sales also encounter greater pressure, many yarn is losing money production, it is very likely that 6-8 months this year will stop production enterprises will increase.

Talking about the trend of this year, the attitude of textile enterprises is pessimistic.

On the one hand, the Sino US trade war is difficult to stop. The purchase of textile and clothing products from the US and Europe will shift to the central and South Asian region. The crisis of Chinese enterprises is difficult to eliminate in a short time. On the other hand, the domestic production capacity is surplus, and the vicious competition between enterprises is fierce.

To sum up, with the dramatic changes in the market, the main bodies also have their own opinions and opinions.

Nevertheless, if this crisis is passed, it will be promising in the future.