Weak Orders In Downstream Markets, Imbalance In Supply And Demand Of Cotton Yarn, Cotton Yarn Market Is Expected To Remain Weak In The Short Run.

Generally speaking, cotton textile market has a general trading atmosphere, and local spinning enterprises are still eligible for orders. However, most spinning enterprises are short of orders, maintaining low start-up level and controlling inventory. Recent orders for domestic demand are acceptable, mostly for regular combs, but the market is more concerned about the continuity of orders. The focus of cotton prices has been raised. Textile companies are now making serious profits losses. Terminal clothing orders are still weak, supply and demand imbalance of pure cotton yarn, it is estimated that the pure cotton yarn market will remain weak operation.

[market overview]

　　 The cotton spot is light today, and the list is light. Today, Zheng cotton futures concussion rose, CF2009 closed 11785 yuan / ton, up 45; CF2101 received 12315 yuan / ton, up 45.

Straight spinning polyester and short price increases, preferential goods, half light 1.4D mainstream trading center of gravity maintained at 5800-6000 yuan / ton nearby. The price of pure polyester yarn in Fujian and Jiangxi is stable, and the price quoted by T40S is 11300-11500 yuan / ton. The price of polyester cotton yarn in Fujian and Jiangxi has been maintained, and the mainstream of TC65/35 32S is 14000-14300 yuan / ton.

Viscose staple fiber high stalemate, there are still a considerable number of contracts to be executed in the factory, there is still a certain time to bear the low production and marketing, will continue to adhere to the current price.

　　 The atmosphere of the cotton yarn market is stable and weak, and the downstream market is still more confused, so the goods are still mainly based on rigid demand. Polyester yarn prices rose slightly, other varieties of yarn stable operation.

　　 Today, the spot market of imported cotton yarn is generally traded. Cotton yarn prices remain stable and weak. Traders are shipping slowly, and the market maintains a low trading atmosphere. There is no obvious bright spot.

The quotation of imported yarn market is steadily rising today, but demand has not kept up. Downstream cotton mill control inventory, to prevent excessive backlog, so to cotton yarn ends, spot and ship purchases are still slow. If the exchange rate continues to appreciate, it may promote a small number of transactions. The price of India's external market is stable, while the price of local carding varieties has risen slightly, but no deal has been made. Traders C16S knitted us $1.94 U.S. dollars / kg, RMB after tax of about 16 thousand and 500 yuan / ton, turnover was light. Vietnam's external market is weak, but the turnover is mostly small. C32S drifting US dollar quoted price is 2.25-2.3 1.85-1.89 / kg, RMB after tax is about 1.85-1.89 yuan / ton. The price of Pakistan is stable and weak, and the turnover is light. Traders second line siro spinning C10S US gold price in about 345 U.S. dollars / piece, RMB after tax is about 15 thousand and 700 yuan / ton.

　　 According to the volume statistics of China Textile City, the total sales volume of grey cloth today is 6 million 520 thousand meters, which is 490 thousand meters lower than that of yesterday. Among them, 4 million 230 thousand tons of chemical fiber cloth were sold today, accounting for 64.9% of the total sales, and 440 thousand tons of cotton cloth, accounting for 6.7% of the total sales, and 680 thousand tons of cotton cloth, accounting for 10.4% of the total sales.

Pricing structure and arbitrage analysis

　　 As of June 3rd, domestic CY C32 price was 18700 yuan / ton (0), India C32S price 18300 yuan / ton (0), price difference 400, Vietnam jet C32S price 18480 yuan / ton (0), price difference 220, no arbitrage opportunities.

[technical analysis]

　　 In June 3rd, the price of cotton yarn 09 contract rose. The highest price is 19525 yuan / ton, the lowest price is 19375 yuan / ton, closing price is 19465 yuan / ton, compared with the previous trading day, it increased by 105 points and the position was 8641, which was 161 more than that of the previous trading day.

[outlook]

The price of cotton yarn CY009 contract rose today. Terminal clothing orders are still weak, supply and demand imbalance of pure cotton yarn, it is estimated that the pure cotton yarn market will remain weak operation. It is advisable for speculators to wait and see. (for reference only)