Cotton Prices Fall To Promote Relatively Stable Sales Of Yarn Sales

Last week (June 22nd -26), the pressure adjustment of Zheng cotton was reduced, cotton mills bought at low prices, and cotton spot transactions increased. In the textile market, the sales of medium and coarse yarn are relatively good, the spinning of hot spinning is still scarce, the export orders are still sparsely scattered, the sale of combed high count yarn is deserted, and the sales of Australian cotton, American cotton and long staple cotton used for high count yarn are also deserted. The epidemic in Europe has eased, and the United States, India and Brazil are still high. The epidemic is still the biggest factor affecting the economy and consumption. The price of cotton viscose polyester viscose drops slightly, polyester 5730 yuan / ton, viscose 8800 yuan / ton. The cotton CNCottonB index is 11830 yuan / ton, compared with zhengmian 2009, the premium is 180 yuan / ton.

Futures. Zheng cotton main CF2009 contract closed on 11650 yuan / ton last Wednesday, the week fell 260 yuan / ton, the Japanese turnover is relatively stable, positions increased by 28174, an increase of 7.9%. The top 20 positions, holding more than one 288965 hands, increased 19957 hands weekly, empty 380631 hands, increased 10634 hands weekly, 91666 hands empty, 9323 hands reduced, after the fall, the short end gradually profits. There are 21454 registered warehouse receipts and 865 weekly reductions. Forecast 2355, weekly increase 77, still have 100 thousand tons above forecast, reflect spot sale pressure is very big. The global epidemic is still very serious, but China has effectively controlled and restarted the economy, the market is gradually recovering, cotton prices are basically flat inside and outside, cotton prices are lower than other cotton except India, and domestic cotton has obvious price advantage, which is conducive to domestic cotton consumption, and has a supporting role for Zheng cotton. It is expected that Zheng cotton main CF2009 contract will have a greater probability of oscillation in the range of 12000-11500 yuan / ton.

Outside: last Friday, the ICE main contract closed at 59.43 cents per pound in December, down 47 points. China and Vietnam actively procurement, sales data is better, on the other hand, some overseas areas have not been effectively controlled, Sino US relations are at risk, China's procurement is still in progress, and the purchase of other countries is expected to recover after the improvement of the epidemic situation. This week may rely on the 20 day moving average.

On the spot. Sales of medium and coarse yarn improved, driving the sale of low-priced cotton. Futures fell nearly 16 trading days low, triggering a large number of spot price transactions, cotton mill bargain library positive. The "double 28" cotton picking price in the inland bank is concentrated at 12200-12400 yuan / ton, and the "double 28" hand picking cotton price is concentrated at 12400-12600 yuan / ton, Brazil cotton 12500-13200 yuan / ton, Australia cotton 14500-15300 yuan / ton, India cotton 11800-12100 yuan / ton, and American cotton 12600-13500 yuan / ton. After the decline of futures, the Xinjiang cotton, which sold on the basis of the price, compared with the imported cotton, the price advantage was obvious, the sales were better, and the sale of cheap American cotton was relatively good, and the high price of Australian cotton, American cotton, long staple cotton and Pima cotton were shipped very little. The cotton mill still adopts the strategy of purchasing with the purchase and low price.

Operation suggestion. The epidemic and Sino US relations are the two major mountain pressures currently on the top of the global economy and cotton consumption. The global economy and cotton prices are at a historic low level. As the world's first cotton consuming country and the second largest economy, China has effectively controlled the epidemic, and the economy has gradually recovered, and the worst time has passed. The first stage agreement between China and the United States is still in good condition. Cotton consumption will gradually recover from low level. It may last for a long time. Cotton prices will also maintain a trend of upward shock and bottom up. Cotton mills can buy in stages, and fast rebound should not be high.