Store Into "Timely Rain" Market Confidence Restored

Affected by the epidemic, Zheng cotton fell sharply after the Spring Festival. The state made timely efforts to solve the sales difficulties of Xinjiang cotton by increasing the dilution of the incoming reserves. The announcement shows that the number of new cotton imported into Xinjiang reached a "triple increase" last week. They increased from 9000 tons to 10000 tons, from 10000 tons to 15000 tons, from 15000 tons to 18000 tons, respectively.
The three adjustment of reserves has highlighted the determination of the state to regulate and control the market, and thoroughly solved the worries behind the sale of cotton lint in the cotton mill. The effect is obvious.
First, Zheng cotton achieved a substantial rebound. As of February 7th, the main cotton CF2005 contract closed 13135 yuan / ton, compared with the closing price of 12565 yuan / ton in February 3rd rose 570 yuan / ton. And the increase in positions will make the daily volume moderate.
Second, the confidence of Xinjiang enterprises is increasing. It is understood that after the Spring Festival, Xinjiang cotton spot once fell sharply. In February 3rd, Akesu, Kashi, Korla and other places' hand picked cotton "double 29" quotes were only around 13000 yuan / ton (public weight, delivery and ticket), and the price rose nearly 500 yuan / ton by February 9th.
In addition, Xinjiang enterprises increase their reserves and most enterprises can "save up and store up". Because of the low risk of entering and storing and quick return of capital, enterprises regard the regulation and control market of the state as "timely rain".
Third, cotton prices remain stable throughout the country. Recently, textile mills and ginning factories were notified that the resumption time was postponed again. But most manufacturers say that because of the timely and effective policies, we are confident that market stability will be maintained. As of February 10th, the "double 28" price of Xinjiang hand picked cotton in the mainland Treasury point was 14000-14200 yuan / ton (gross weight, delivery and ticket), which was basically the same as before the Spring Festival.
To sum up, the daily intake of reserves increased to 18000 tons to the market, and the market became stable, providing strong support for enterprises to quickly resume production after the outbreak.