The Yarn Market Is Light, And The Profit Is Not Good. The Market Outlook Is Pessimistic.

The cotton yarn market is not bad, but domestic orders are better, but prices are difficult to rise. At present, the differentiation between the varieties is obvious. C40S is the best in the market, and some textile enterprises have switched to the production. The demand for the remaining varieties remains light, and the spinning enterprises maintain a lower start-up level, but production and marketing are still not balanced, and stocks are rising slightly. The profit of spinning enterprises is generally not good, and it is still not optimistic about the order of the future market. It is expected that the pure cotton yarn market will remain weak.

[market overview]

　　 Today, cotton spot trading is lighter than yesterday, and enquiries hung up slightly. Early today, a small number of bills have been swept or directly traded, and the latest increase is mostly in the vicinity of 11400~11500. Today, Zheng cotton futures declined, CF2009 closed 11480 yuan / ton, down 80, CF2101 closed 12025 yuan / ton, or 70.

Direct spinning polyester and short price stability, half light 1.4D mainstream trading center maintained at around 5600-5800 yuan / ton. Hebei imitation Dahua yarn price maintenance, T45S mainstream tax 9800-10100 yuan / ton, Shandong polyester cotton yarn quotation stability, TC65/35 32S mainstream newspaper 14000-14400 yuan / ton.

Viscose polyester short price rose slightly, the lower reaches of the price increase before the scale of a lot of compensation, after yesterday's price increase, there is still some partial intention of the lower part of the market, but in the face of the new price, the overall operation is relatively cautious.

　　 Today, yarn prices have been stable and stable, and the cotton yarn market has been maintained. The stock market of cotton yarn continues to increase slightly.

　　 Today, the spot market of imported cotton yarn is generally traded, and the price is stable. Inventory differentiation is serious, local stock is still high, market mentality is stable, but the ring has improved significantly compared with April.

The price of imported yarn is steady today, and the market demand is lighter than that of last week. Buyers bid low, local small transactions. Downstream cotton pure fabric factory pressure is generally large, the recent weak demand for order to follow up. India's foreign market price is steady today. Local factory JC32S US $2.35 / kg, RMB 20 thousand and 100 yuan / ton after tax. The price of Vietnam's external market is stable. Shipments are still slow when the mills are running low. Affected by cost, Yue yarn has little room to negotiate. C32S negotiable price at $2.23 / kg, RMB after tax is about 18 thousand and 400 yuan / ton. The price of Pakistan's external market is stable and weak. The C10S price of second tier siro spinning is US $340-355 / piece, and RMB after tax is about 1.55-1.62 yuan / ton, and the turnover is light.

　　 According to the volume statistics of China Textile City, the total sales volume of grey cloth today is 9 million 560 thousand meters, an increase of 910 thousand meters compared with yesterday. Among them, 5 million 860 thousand tons of chemical fiber cloth were sold today, accounting for 61.2% of the total sales, and 680 thousand tons of cotton cloth, accounting for 7.1% of the total sales, and 1 million 80 thousand tons of cotton cloth, accounting for 11.3% of the total sales.

Pricing structure and arbitrage analysis

　　 As of May 29th, domestic CY C32 price was 18700 yuan / ton (0), India C32S price 18300 yuan / ton (0), price difference 400, Vietnam jet C32S price 18500 yuan / ton (0), price difference 200, no arbitrage opportunities.

[technical analysis]

　　 In May 29th, the price of cotton yarn 09 contract dropped. The highest price is 19370 yuan / ton, the lowest price is 19130 yuan / ton, closing price is 19145 yuan / ton, compared with the previous trading day, it reduced by 205 points and the position was 8313, which was 13 hands lower than that of the previous trading day.

[outlook]

Today, the price of cotton yarn CY009 contract fell, and cotton spot trading is light today. Cotton yarn market profit is not good, most of the low price to inventory, gray market atmosphere is light, the market is not optimistic about the market outlook. It is advisable for speculators to wait and see. (for reference only)