Zheng Cotton Plummeted To Its Lowest Level For Nearly 3 Years

In the afternoon of May 22nd, zhengmian 1909 was down, and it continued to be low for nearly 3 years.

As of the end of the afternoon, Zheng cotton 1909 reported 13460 yuan / ton, down 3.37%.

After the May 1 holiday, the cotton textile industry chain was in poor demand.

"Wednesday's fall is not only affected by the above factors, but also the recent impact on the whole mood. Moreover, the demand for cotton spinning is not good enough, there is no order in the lower reaches and high inventory."

Customs data show that 1-4 months of textile and clothing exports 75 billion 764 million US dollars, down 3.69% from the same period last year.

Textile exports amounted to $36 billion 670 million, an increase of 0.81% over the previous year, and clothing exports of $39 billion 90 million, down 7.56% from the same period last year.

According to customs statistics, in the first 4 months of this year, the total export volume of goods in China increased by 5.7% (RMB), and textile exports increased 0.63 percentage points higher than that of the whole country, but the export volume of clothing was lower than the 8.23 percentage point of the total export growth of the whole country.

In the 125th Canton Fair ended in early May, China's export volume was $29 billion 730 million, down 1.16% from last spring's fair.

Against this background, domestic textile and garment exports are under pressure.

According to statistics, textile and clothing sales are also slowing down.

In April 2019, the total retail sales of consumer goods totaled 30586 billion yuan, up by 7.2% compared with the nominal growth rate, and the total retail sales of textiles and clothing reached 100 billion yuan, up -1.1% in nominal terms, the only negative value since March 2009.

In 2019 1-4, the total retail sales of consumer goods totaled 128376 billion yuan, up 8% compared with nominal growth. The total retail sales of textiles and clothing were 441 billion 800 million yuan, up 2.2% from the nominal year.

Noting that the USDA5 global cotton supply and demand forecast report shows that the total output of cotton in the 2019/20 is 27 million 315 thousand tons in the year of USDA5, an increase of 1 million 529 thousand tons compared with last year, and consumption of 27 million 418 thousand tons, an increase of 701 thousand tons compared with last year, and a terminal inventory of 16 million 479 thousand tons, representing a reduction of 170 thousand tons compared with last year.

It is worth noting that the downstream consumption of domestic cotton is not good enough, and the pressure of raw material supply is still to be alleviated.

At the same time, we should pay close attention to the weather situation in Xinjiang area for the future cotton market.

New cotton has been sown and sprouting in China, and the extreme changes in weather are also likely to cause severe fluctuations in Zheng cotton prices.