"Golden Nine Silver Ten" Traditional Textile Peak Season Approaching Cotton Price War Intensified

At the end of the year, there was not much time left. The pressure on the supply side of the market continued to emerge. Xinjiang cotton, imported cotton and reserve cotton showed their magic and fought for the market. With the arrival of the "golden nine silver ten" traditional textile peak season, some cotton mills in the lower reaches have begun to receive new orders. Although the demand for raw cotton has increased, the situation of buying and selling on demand by the market seems to have gradually evolved into a "price war" between business and enterprises.

Close to September, Sino US consultations did not take place as scheduled. In August 22nd, the spokesman of the Ministry of Commerce said, "although the US side will delay tariffs on some Chinese goods exported to the US, any new tariff measures of the US side will unilaterally lead to the escalation of trade frictions." It can be seen that the stalemate of Sino US trade relations is difficult to break, and the downstream textile enterprises are facing enormous pressure on exports.

Since the outbreak of Sino US trade war, cotton prices have been continuously explored, and the pressure on cotton enterprises has been increasing. According to recent surveys, whether the cotton purchasing enterprises of Xinjiang cotton, which was purchased at the early stage of cotton marketing last year, or the enterprises that purchase cotton reserves since the beginning of this year's cotton reserves, it is generally indicated that no matter whether the cotton price can rebound now, the funds occupied have been locked up, and the risk of enterprise operation may be bigger and bigger.

A southern Xinjiang trader said that he did not want to gamble again. At the same time, we also feedback that the price of Xinjiang cotton is falling every day. The first day is 13400 yuan / ton, and it will not be able to sell the price in second days. Another importing cotton trader speaks frankly, and now it loses 3000 yuan / ton per ton of cotton, even if the goods are sold at a low price, it will not sell well. The main problem is that no one orders. This phenomenon is no longer a case.

According to the recent monitoring of the Qingdao port market, the mainstream price of Brazil cotton in early Zhou Dynasty is still 13100-13300 yuan / ton, and now 12700 yuan / ton is difficult to sell. What's more, the middlemen realize that if you want to purchase lint of a certain index, all kinds of cotton merchants will go up and recommend high cost performance resources, and the low-end quotation will emerge in an endless stream, making it difficult to decide.

Behind the scramble for sales opportunities in the market, it reflects the worries of Cotton Traders on the market outlook, which is the urgency of timely stop loss and the expression of risk aversion. What will happen next week?

Yesterday (August 22nd), the US Department of agriculture's export sales report data, on August 2019 9-15, the 2019/20 cotton net signed volume in the US was 37 thousand and 200 tons, a decrease of half compared with the previous week. The weakness of US cotton export data will have a negative impact on short-term international cotton prices. Recently, the pressure of domestic dumping is increasing, and the delivery time of Zheng cotton CF1909 contract is approaching. The warehouse receipts will also increase. Next week, the price war will become more intense.