Hebei: Cotton Prices Are High, Stabilizing Market Is Bigger.

Recently, Hebei's ginning plants and textile mills have been on holiday, and prices are showing signs of stabilization. Moreover, with the signing of the first stage agreement on Sino US trade negotiations, the market is divided.

As of January 17th, the mainstream price of cotton in Cangzhou, Hengshui and other places in Hebei was 13700-13800 yuan / ton (gross weight, pick up and carry tickets). The slightly worse quality price was near 13500 yuan / ton, unchanged from yesterday. At present, there is little stock in the ginning mills and less inventory pressure after years.

At present, the local cotton ginning plants stop collecting, and only a few small factories are still buying low-grade cotton. In January 17th, the mainstream purchase price of seed cotton in Dongguang County and Wuqiao County of Hebei was 3.07-3.25 yuan / jin (the lint percentage was 38%-40%, the moisture regain rate was below 10%), which was flat compared with yesterday. The mainstream purchase price of seed cotton in Hebei Hengshui area was at 3.25-3.32 yuan / Jin line, and remained stable for nearly two days.

According to the cotton farmers, today is the twenty-three year of the twelfth lunar month, the traditional Chinese New Year. Therefore, all trades and professions have stopped working for the new year, and cotton growers are no longer selling cotton. However, cotton farmers are generally reluctant to sell. Many cotton growers say that after the Spring Festival, they sell seed cotton again, hoping that the price will be around 3.40 yuan / Jin.

Traders and middlemen are no longer quoted. According to the quotation level at the beginning of this week, at present, Xinjiang cotton "double 28" pickup price in Hengshui and Cangzhou is still not less than 14300 yuan / ton (gross weight, pick-up, including tax), the price of Chen cotton is 13900-14000 yuan / ton, and the difference between new and old cotton is 300-400 yuan / ton. Chen cotton is still more popular with small textile mills. According to the feedback from some small factories, the order can be maintained until 2 and March. Raw materials are usually stored in 25-30 days, and individuals are more than 40 days.

Due to the signing of the first stage agreement on Sino US trade negotiations, the Hebei market has greater divergence on the market outlook. Optimists believe that the price of cotton is still at the bottom, and the market can still be expected after the year. Pessimists believe that after the Spring Festival, the cotton market is hard to rise again.