Cotton Prices Fall Before Buying And Selling

Information staff feedback, the cotton spot sale and seed cotton purchase quotation of Hengshui city of Hebei province have both been downwards retraced recently, the market heat has declined, and at the same time, because of the Spring Festival approaching, the cotton purchase and sale work has stopped gradually. In January 15th, the first stage economic and trade agreement between China and the United States, which was most concerned by the market, was finally settled. Cotton and textiles were not widely covered, and the tariff problem was expected to improve. Due to the high expectations and speculation, Zheng cotton futures prices rose rapidly in the early days. Under the premise of bad news, futures cotton prices dropped 530 points, and two days swallowed up the first half of the increase. Under the influence of the futures market, cotton prices in Hengshui, Hebei can only follow suit.

On the 17 day, the local cotton enterprises' spot sale quotes, the real estate white cotton 3128B2 sells the quoted price 13800 yuan / ton (the delivery price, the public settlement, the ticket, the same below), the white cotton 4128B2 sells the quoted price 13200 yuan / ton, the slight pollution cotton 1228B2 quoted price 13300 yuan / ton, the slight pollution cotton 2227B2 quoted price 12900 yuan / ton, compared to 15 day falls 100~150 yuan / ton. On the same day, the cotton price of local cotton white cotton grade 3 (lint percentage 39%, moisture regain 10%) was purchased at 3.25 yuan / Jin, white cotton grade 4 or lighter cotton grade 1 (lint percentage 38%) quoted price 3.20 yuan / Jin, and flower (lint rate 37%) 3.17 yuan / Jin, compared with 15 days, 15% to 3.17 yuan / Jin.

Due to the gradual release of textile enterprises before the festival, plus the substantial withdrawal of Zheng cotton futures prices, only local cotton market quotes are not actually traded. In addition, the Spring Festival as the most important holiday in a year is coming soon. Local cotton farmers are busy buying new year's products and visiting relatives and friends. Before this, there was no doubt that there were some regrets about the cotton market, which was firmly watching many markets and selling at a premium but did not sell to the spot.

The first reason is that the recent textile enterprises reflect the sales price of pure cotton yarn has risen. Although the magnitude is not large and sales volume is not satisfactory, it is good for textile enterprises. Two, according to the first stage economic and trade agreement between China and the United States, tariffs on textiles and clothing exported to the United States should be reduced to 7.5%. Although local cotton enterprises do not expect excessive cotton spot sales prices to rise sharply to the market forecast of the previous 6 million level, but as long as the cotton price rise slowly enough period, and then with sales volume to win, then will make money. I believe that the reason why they are optimistic about the future market is that even if they buy cotton seeds and sell cotton according to the above quotations, as long as the cotton price does not fall after the festival (there is no sign of a big drop in the market), there will be a profit of 200 yuan / ton, which has never happened since the beginning of 2019/20 cotton year or even three years. Their enterprises plan to start processing cotton seeds before and after the first sixteen months of the month, and express that they will strictly follow the changing trend of the Zheng cotton futures market, and work out a feasible and feasible plan for seed cotton acquisition and processing and spot sales, and resolutely and steadfast confidence in selling smoothly and smoothly.