Cotton Prices Continue To Rise And Market Sentiment Is Slowly Restored.

In recent years, with the increasing efforts of countries around the world in the prevention and control of new crown pneumonia, the epidemic seems to have been curbed, and some countries are showing signs of improvement. At present, although the cotton market in Hengshui city of Hebei province has not yet fully recovered, the cotton price has finally stopped the pace of continuous decline, driven by the cotton futures market.

Seed cotton purchase quotation fell, turnover was light.

Although the local type 400 cotton acquisition and processing enterprises have not yet carried out their normal work in recent years, there is no interruption in the quotations of seed cotton quotas delivered by cotton enterprises to Cotton Traders and cotton growers through WeChat. They are preparing for the upcoming seed cotton purchase. In April 10th, the purchase price of cotton seed cotton was between 2.70 and 2.75 yuan / Jin, requiring the rate of lint not less than 38%. According to feedback information from a local cotton enterprise in Jizhou, the price of seed cotton has been stable for nearly a week, and it has fallen by 0.60 to 0.70 yuan / Jin before the Spring Festival in 2020. For example, according to the current local cotton seed sale quotations 1.22 yuan / kg, wastage rate 2% and processing cost 600 yuan / ton, the lint cost of seed cotton processing after the above price acquisition is 11100~11200 yuan / ton, and the price of the current cotton futures contract CF2005 in the near future is equivalent. However, because of this loss, cotton farmers can not accept it, so they are still on the sidelines.

Spot sale quotes continued to rise, some cotton traders futures bottom.

Since April 2nd, the cotton price of Zheng cotton futures market has opened a slight rise mode, and the price of the main contract CF2009 has risen to more than 1200 points to 10 days. So far, the local cotton market has not really been traded yet, but the spot sale quotes of Cotton Traders refer to the futures market trend and synchronously start the small step jogging up mode. On the 10 day, the local cotton merchants real estate white cotton 3128B2 online sale price of 11300 yuan / ton (delivery price, public settlement, with the same ticket), white cotton 4128B2 sales offer 10900 yuan / ton, light point cotton 1228B2 quote 11100 yuan / ton, light point cotton 2227B2 quotation 10600 yuan / ton; the same standard of Xinjiang machine picked cotton on the basis of real estate cotton quoted price floating 400~500 yuan / ton. The above quotations rose by 200~300 yuan / ton compared with 2 days, with an average daily gain of 30~50 yuan / ton. But there is less volume and almost no market.

In addition, in view of the oversold cotton futures market in the early days, cotton prices were at a low level since 2008, and some of the more radical cotton traders began to make copies of the warehouse receipts in order to prepare for the full recovery of the cotton market in the later stage. According to local Cheng cotton futures designated delivery warehouse news, since the beginning of March, the warehouse registered cotton warehouse receipts from 448 to 17920 tons, reduced to 9 days 352 14080 tons, a decrease of 21.43 percentage points. The warehouse responsible comrades said that 96 of the 3840 tons of warehouse receipts, which are basically reduced to a total of current turnover, are so far outnumber. According to him, recently the warehouse management and confirmation period is basically based on Cotton Traders, with only two or three occasional textile enterprises. From his feedback information, I feel two points. First, the local cotton market futures have come to the front. Two, the textile market is far from being revival and start. Cotton Traders' behavior is interpreted as "bottom up" and "store up".