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Cotton Continues To Run, And Ice And Fire Are Staged On Spot Trading.

2020/7/8 11:11:00 0

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Since 5 and June, the market has heard the rumour of the reserve cotton wheel. After the return of the Dragon Boat Festival, officials finally announced that they would throw 500 thousand tons of storage and 8 thousand tons of sunrise, from July 1, 2020 to September 30, 2020.

Last week in from July 1st to 3rd, the first weekly turnover rate was 100%, and the average price of the transaction was 3128B. The price of new cotton was good, but the spot market was not good, especially in the real estate cotton market.

Unit: yuan / ton

date	Resources for sale (ton)	Actual turnover (ton)	Turnover rate	average price	Discount 3128 price
July 1st	Eight thousand and thirty-five point two three two	Eight thousand and thirty-five point two three two	100%	Eleven thousand one hundred and thirty-nine	Twelve thousand five hundred and forty-nine
July 2nd	Eight thousand and thirty-six point four seven	Eight thousand and thirty-six point four seven	100%	Eleven thousand three hundred and seventy-two	Twelve thousand three hundred and three
July 3rd	Eight thousand and sixty point two two	Eight thousand and sixty point two two	100%	Eleven thousand three hundred and ninety-eight	Twelve thousand three hundred and sixteen
Total and average	Twenty-four thousand one hundred and thirty-one point nine two two	Twenty-four thousand one hundred and thirty-one point nine two two	100%	Eleven thousand three hundred and three	Twelve thousand three hundred and eighty-nine

In contrast to the relevant benchmark prices, CCIndex, CNCottonB and Caunt Luke index have all been upward trend in recent days, while the average price of the round out transaction is equivalent to 3128, which is higher than the three indexes.

The process of storing cotton wheels is hot. Although the price has not yet been completed, the turnover rate is still 100%. Compared with the cotton reserve, the spot trading is rather bleak.

First of all, the real estate cotton, which is processed by many cotton ginning plants in the main producing area of Hebei, is supplied to the downstream yarn such as coarse yarns, air spun yarn and so on. It is precisely the customers who use the reserve cotton, and the customers are pressed for the real estate cotton because of their intention to shoot the store. Take Hebei Xingtai area flower factory as an example, before the turn out, the manufacturer is selling four lint gross weight tickets to the price of 11800 yuan / ton, so far it has been reduced to 11600 yuan / ton, or 200 yuan / ton, and the customer demand is reduced. The second is the impact on the intermediate trade links, which stems from the preference of news preferences, positive and stable moves, resulting in a marked increase in spot price costs. The downstream yarn customers have limited affordability for good quality resources, and the upward movement of futures prices makes some yarn customers withdraw from the market.

According to long Zhong information, under the current demand is not satisfactory, the downstream yarn enterprises will inevitably reduce the spot market purchase quantity, and the demand is still limited. Even if the performance is better, it should not be blindly optimistic. The basic situation of the cotton market for oversupply is still there. In addition, the global epidemic has not been resolved and there is no substantial progress in vaccine development. In addition, affected by the expected improvement in capital and economic data, it is not ruled out that there will be funds to enter cotton futures trading. If the main contract has an opportunity to rise, it is suggested that the current hand held processing enterprises actively sell the stock with higher cost in the earlier stage.