Cotton Futures Prices Rose, Spot Weakness Option Optimistic

Although the prices are rising sharply in recent period, the spot sale of lint cotton in Xinjiang is not optimistic. Although the quotation has been raised, it is only wishful thinking. The downstream textile mills and middlemen do not even have telephone inquiries, let alone door-to-door goods, and the market sales are getting colder and colder.

According to the general manager of a processing enterprise in southern Xinjiang, as a result of the bullish hoarding of more than 3000 tons of lint last year, the market lost about 5000000. In the early stage of the acquisition, the price of seed cotton was low but it did not dare to accept it. Later, the price of seed cotton rose all the way, and the attitude was undecided. So this year, the purchase amount of seed cotton was less than half of that of last year, and the lint processing capacity was less than 2000 tons.

Due to the sale of all the lint and the withdrawal of the funds, the company bought 2000 tons of lint on the option, and the profits rose as the futures rose. As of today, the price of hand picked cotton in the southern Xinjiang is between 13600-14000 yuan / ton (pick up, gross weight, and ticket), and the settlement price is 13200-13600 yuan / ton, which is 200 yuan / ton higher than last week.

As the Spring Festival approached, the number of takeover enterprises increased, the output of cottonseed decreased, and the number of cars from Xinjiang to the mainland was less, the freight rate was higher, and the cottonseed market was supported. But because of the poor market of cottonseed meal in the downstream, the enthusiasm of the oil plant to purchase cottonseeds was not high, so the enterprises had not reported a rise, but not much. As of today, the price of cotton seeds in the southern Xinjiang has risen to 0.99 yuan / Jin, with a high price of 1.02 yuan / Jin, up 0.05-0.10 yuan / Jin compared with last week.

The rise of cottonseed price supports short staple market, but because of the Spring Festival approaching, the downstream cotton refining and chemical fiber mills stop purchasing gradually increased, some of the workers have returned to the mainland, and the short staple continues to maintain stability. As of today, the price of South Xinjiang short staple is kept stable under the support of cotton seed price rising. The quality of short staple is 3400 yuan / ton, and the industrial grade 2950-3000 yuan / ton is not too high.