Reserve Cotton Prices Rise, Lint Spot Down.

According to the statistics of business community, as of February 10, 2020, the average price of the domestic lint spot market was 13448 yuan / ton, which fell 1.10% from last Monday (2.3), down 13.43% from the same period last year. On the first working day after the Spring Festival, the domestic lint spot dropped sharply, and there were signs of a rebound.

Because of the control measures against the epidemic, most of the areas continue to be delayed, and the market is concerned about the low demand for cotton. After the Spring Festival, Zheng cotton main force started off, and lint spot also quickly cooled. At this point, the reserve cotton wheel has become the focus of attention. On the one hand, last week, the number of daily rounds of cotton reserves increased steadily, and finally stabilized at 18000 tons, and the turnover rate was close to 100%. On the other hand, the transaction price of reserve cotton is 13195 yuan / ton -14135 yuan / ton, the average price is near 13700 yuan / ton. Zheng cotton was boosted and rebounded from 12600 yuan / ton to wan3 above. However, according to the formula calculated by the State Grain and material reserve bureau and the Ministry of Finance issued by the Ministry of Finance and the Ministry of finance, the maximum price limit is 13715 yuan / ton (10-14 February). Domestic resumption in mid February, cotton demand is expected to pick up, let the market confidence increase, dealers wait and see mood is strong, lint quotes stop.

The US cotton contract has maintained a high volume of high-speed freight traffic. The US Department of agriculture report shows that on January 24, 2020 -30, the net contract volume of the US cotton in the 2019/20 year was 75 thousand and 400 tons, a decrease of 4% over the previous week, an increase of 28% over the previous four weeks, and a 68 cent / pound of ICE cotton futures on February 4-6.

Business analysts believe that most of the current cotton textile enterprises have not yet returned to work, coupled with limited transport, the actual sale is not smooth, the reserve cotton rotation has become the focus of attention. The daily listing volume increased by 11000 tons, and the turnover rate was almost 100%. Market confidence has picked up and cotton prices are expected to remain stable.