Xingtai Market "Two Up Three Down" Phenomenon This Year Cotton Trend Confidence Was Defeated.

Hebei Xingtai market feedback, local market appears "two rises" and "three drop".

The so-called "two rise" refers to the following two aspects:

First, cotton growers will increase their production confidence.

As of June 5th, the height of the early sowing cotton seedlings was generally 20-25 cm, 30 cm in individual, 4-7 true leaves, 2-3 fruit branches, and 10-15 cm in height and 3-4 true leaves in the late sowing cotton seedling.

The overall growth is slightly better than 2018.

On the 5 day, 15-20 millimeters of rain was ushered in some parts of the region, effectively alleviating the drought. It is estimated that this year's yield per unit area or over 550 Jin / mu will be slightly higher than that of last year.

Two, cottonseed prices continue to rise.

Xingtai region is the key area of cotton oil processing in Hebei Province, and Linxi and Weixian County have more than 100 oil extraction plants.

As of 5 days, the local cotton seed price was 1.12 yuan / kg (seed oil 13%, moisture 16%), and Xinjiang cottonseed price to 1.20 yuan / jin (seed oil 16%, water 12%), all increased 0.03 yuan / Jin than last Friday. Because cottonseed is in short supply, the material is scarce. It is expected that cottonseed will continue to rise, and every oil extraction plant is hard to find. In addition to high price seed, it is actively allocated in Xinjiang.

The so-called "three drop" refers to the following three aspects:

First, cotton spot is down again.

As of 5 days, the spot prices of local three and four grade real estate cotton in Xingtai were 14400 yuan / ton, 14000 yuan / ton respectively, down 200 yuan / ton yesterday.

Xinjiang cotton "double 28" machine picking cotton local bank goods price 14600 yuan / ton (public, including tax), down 200 yuan / ton yesterday, Zheng cotton CF909 contract fell below 13000 yuan / ton, reported 12910 yuan / ton, the lowest since September 2, 2016, the market pessimism rose again, spot traders were forced to sell.

Second, textile factories, traders purchasing raw materials to reduce the enthusiasm.

Because cotton enterprises are pessimistic about the post market, the enthusiasm of purchasing cotton is greatly reduced.

Third, market confidence will drop again.

The Sino US trade war is escalated, and there is no timetable for the next round of consultations. The United States threatens to impose tariffs on the remaining 325 billion dollars of imported goods. The market's confidence in the cotton trend has been defeated again this year. Many enterprises say that in 2019, when the international and domestic environment is depressed, it will be another year for the enterprises to reshuffle.