Demand Is Not Good Enough. Cotton Prices Are Hard To Overcome.

 

Concussion, long short positions, 12600, short cotton target spot sales are still sluggish, cotton prices are still weak, and cotton prices are at a high level. The new cotton will be listed on the market in September, and the pressure on the supply side of cotton will continue to increase. Some cotton holding enterprises are preparing to buy new cotton, and the phenomenon of low-priced selling is increasing. In addition, under the Sino US trade war situation, the start-up rate of downstream cotton textile enterprises is much lower than that of previous years. Some enterprises' inventory levels are hard to drop, funds are tight, and even factories begin to take off. Enterprises strictly control raw cotton stocks, cotton demand is seriously affected, and market demand for cotton continues to be weakened. Zheng Mian narrow

 

Since August, the main contract of Zheng cotton has continued to fall, and the selling price of domestic bases has also been reduced by 1000-1200 yuan / ton, and the losses of some cotton enterprises which are not covered by the guarantee or the low proportion of hedging have continued to expand, and the market pessimism has spread. Part of the low inventory, cash flow pressure of cotton enterprises to rush to ship clearance, and some large and medium-sized cotton traders to join the ranks of the lower price shipments. In August, spot prices were significantly reduced. In August, the sales progress of Xinjiang cotton was obviously accelerated (the proportion of uncontracted delivery increased), which was reflected in the following three points: first, the sales of cotton Corps in the Corps increased substantially. The two is that the base of Xinjiang cotton and the number of deliveries are relatively large. Three, the southern part of the cotton ginning factory hand picked cotton, machine pick cotton quotes continue to enhance the attractiveness. It is understood that at present, the conservative estimate of Xinjiang still has 130-140 tons of cotton for sale. Warehouse enterprises generally hope that cotton enterprises and traders will seize sales and make room as early as possible so as to smooth the storage of new lint after listing.