Market Demand Is Limited, Cotton Yarn Fundamentals Are Not Optimistic, Expected Price Weak Operation.

The cotton yarn market has a better local turnover, and the overall turnover atmosphere is general and the price is more stable. The cost of cotton is high, and the downstream prices are much lower. The profits of spinning enterprises are generally not good, and the orders are insufficient. At present, European and American orders have not yet been restored, domestic demand orders are relatively limited, the supply and demand imbalance of pure cotton yarn is still uneven, the fundamentals are still not optimistic, and it is expected to remain weak.

[market overview]

　　 Cotton spot trading is still light today, enquiry list is light. At present, the mainstream position has moved slightly to 11600 and below. Today, Zheng cotton futures have dropped sharply, and CF2009 has received 11780 yuan / ton, down 5; CF2101 has received 12310 yuan / ton, or 5.

Direct spinning polyester short price stability, preferential goods, half light 1.4D mainstream trading center of gravity maintained at 5800-6000 yuan / ton nearby. Fujian pure polyester yarn offers stable, T32S mainstream offer 10000-10200 yuan / ton, Shandong market polyester cotton yarn negotiation goods, CVC60/40 32S mainstream newspaper 16000-16500 yuan / ton.

Viscose staple fiber market continues to be stalemate, upstream viscose plant adhere to high quotations, there is no signs of loosening in execution, the mainstream factory quotes at 9300-9600 yuan / ton, downstream of the price is not acceptable, most of the choice of pre digestion inventory, a small number of rigid demand is also mainly through the traders link to buy, this part of the price of 9000 yuan / ton up and down.

　　 The volume of cotton yarn market remains weak, and the price of yarn varies little in recent years. In the early part of inventory digestion part of the stock has gradually increased. The price of polyester cotton yarn has increased slightly, and the price of other yarn varieties has been stable.

　　 The imported silk spot market has maintained a trading atmosphere of 3-4, and the market price has remained stable. The stock market has dropped earlier than before, but it is still relatively high, and the stock of jet spinning and siro spinning is still huge.

The market of imported yarn has little change, and the overall turnover is light. The price of India's external market is steady, and the price of air spinning is divided. The demand in China is normal. Some of the mills are starting to produce some stocks. Local traders spun JC32S US $2.4 / kg, RMB 20 thousand and 400 yuan / ton after tax. The price of Vietnam's external market is mainly stable, while a small number of local goods continue to run, and factories and traders are selling more pressure. C32S drifting US $2.23 / kg, RMB 18 thousand and 300 yuan / ton after tax. The price of Pakistan is stable and weak. Traders second line siro spinning C8S US gold price in about 340 U.S. dollars / piece, RMB after tax is about 15 thousand and 400 yuan / ton.

　　 According to the volume statistics of China Textile City, the total sales volume of grey cloth today is 6 million 970 thousand meters, an increase of 1 million 450 thousand meters compared with yesterday. Among them, 4 million 920 thousand tons of chemical fiber cloth were sold today, accounting for 70.6% of the total sales, and 580 thousand tons of cotton cloth, accounting for 8.3% of the total sales, and 870 thousand tons of cotton cloth, accounting for 12.5% of the total sales.

Pricing structure and arbitrage analysis

　　 As of June 4th, 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 4th, the price of cotton yarn 09 contract dropped. The highest price is 19520 yuan / ton, the lowest price is 19315 yuan / ton, closing price is 19395 yuan / ton, compared with the previous trading day, it dropped 70 points, and the position was 8795, which was 20 less than that of the previous trading day.

[outlook]

Today, the price of cotton yarn CY009 contract fell. At present, the domestic demand is limited, the supply and demand of cotton yarn is unbalanced, and the profits of the enterprises are not good. It is estimated that the pure cotton yarn market will remain weak. It is advisable for speculators to wait and see. (for reference only)