Cotton Trading Reserve Is Favored By Spot

According to the feedback from Cotton Traders and textile enterprises, due to the impact of Zheng cotton CF2009 contract shock and falling below 12000 yuan / ton in the trading day, the cotton spot order transaction had a more obvious recovery, and the basis quotation and "buy it now" transaction had little improvement. The overall cotton market is supported by high temperature and drought in most cotton areas of Xinjiang and the aggravation of floods and floods in the cotton areas of the Yangtze River Basin. Some cotton enterprises and traders are still reluctant to sell and maintain their prices. On July 14, the public weight quotation of "Shuang 29" machine picking cotton in Xinjiang was 12500-12700 yuan / T (grade 21), and that of "Shuang 28" was 12000-12100 yuan / ton (grade 31), which was increased by 30-50 yuan / ton compared with the previous two days.

Some enterprises in Jiangsu, Zhejiang, Guangdong and other places reported that the cost of cotton yarn with 50s and above was basically equal to or even upside down with the price. The production and receiving of high count yarn were suspended, and the cotton procurement was weak. In addition, the reserved cotton was shipped out. Therefore, some cotton trading enterprises said that since July, cotton spinning mills and middlemen with active price inquiry and point price procurement continued to decrease compared with may and June. At present, the panel price of cf2007 is 11600 yuan / ton, which is lower than the average transaction price of reserve cotton wheel.

At present, there are two reasons why cotton enterprises and traders do not accept cf2007 contract warehouse receipts. One is that textile enterprises are worried that the warehouse receipts with high color level and high premium are matched for delivery, which is quite different from the actual demand; the other is that once receiving the warehouse receipt from the delivery warehouse in Xinjiang, a series of problems such as delivery, warehousing, safety and insurance should be considered, which involves a lot of energy.

Textile enterprises in Henan, Hubei and other places believe that although traders and cotton enterprises in Xinjiang have more base quotation and price point price resources, the impurities of machine picked cotton in Xinjiang generally reach 3.5-5% in the middle and later period. Even if the lint price is 100-200 yuan / ton lower than the market price, the opening, impurity removal and fiber removal of cotton mills will not only lead to an increase in cost, but also a low spinning production rate. In addition, if the cotton yarn length and color of Xinjiang Tongji cotton Co., Ltd. are lower than those of cotton yarn of grade 40 and cotton stock, the cost of purchasing cotton yarn is lower than that of cotton yarn of grade 40 and cotton quality reserve.