Xinjiang: Bullish Sentiment Is Rising. Cotton Market Is Not Big.

Recently, the bullish mood of Xinjiang market is higher. However, due to the end of the year, most cotton enterprises are suspending inquiry and trading.

As of January 8th, there were only a few special low quality cotton seeds in Akesu, kurku, Kashi and other places in southern Xinjiang. They were not sold at 34% or 35% lines. The purchase price of hand picked cotton was 4.5-5.0 yuan / Jin, which was unchanged from the previous week. At present, the ginning factory works first to produce lint, and the two is to sell.

Because of the sharp rise in Zhengzhou cotton in the past week, most of the enterprises in the territory were bullish, resulting in a sharp rise in base quotes and prices. At present, the "double 29" hand picked cotton price is quoted at 13900-14000 yuan / ton, and the "double 28" hand picked cotton weight is quoted at 13500-13700 yuan / ton, which is up 400-500 yuan / ton in late December.

According to middlemen and traders in Henan, Jiangsu, Shandong and other places, the number of purchases in recent years is not large, mostly based on inquiry, goods and negotiations, but most orders are more cautious.

According to analysis:

First, the downstream market is more divided, bullish and bearish, and the future trend is unpredictable; second, Zhengzhou cotton continues to go up this week. As of 7 days, the main 2005 contract closed at 14215 yuan / ton, compared with the 6 day closing price of 14070 yuan / ton rose 145 yuan / ton. Moreover, Zheng cotton's holdings increased sharply and volume increased.

On the one hand, the industry will see a rise in the background of Zheng cotton's continuous rise, but it can not be completely removed. Therefore, most of them insist on inquiry, look at goods and wait for the market to make a move.
In addition, the transportation of Xinjiang cotton continues to improve in recent years. The key points of transportation are Henan, Jiangsu, Shandong and Sichuan. Freight rates have risen slightly, and the freight rates of other non key lines have been slightly reduced. In early January, the price difference between Xinjiang and Xinjiang reached 400-500 yuan / ton, and the market looked forward to the continuation of the policy of transportation subsidy.