Cotton Vice Fatigue Is Obvious, But The Price Of Space Is Not Big

At present, local cotton by-products sales are still not fast, local market slightly down. New cottonseed production in Xinjiang was slow, which led to a decline in prices. At the same time, the sales of cottonseed oil and cottonseed meal in the middle and lower reaches were not smooth, and most of the oil factories fell into losses, which affected their enthusiasm to enter the market. Recently, soybean oil and other by-products continue to squeeze market share. However, this year's overall output of new cottonseed has become a foregone conclusion. The manufacturers still have expectations for the future market. The high purchase cost will continue to support the cotton by-product market, and the overall future market is expected to be stronger.

Cottonseed is mostly stable Some regions continued to decline. In Xinjiang, cottonseed exports are slow, the price of former cottonseed is too high, cotton oil mills continue to lose money, oil mills have a strong sense of price reduction, and some manufacturers have stopped collecting due to high prices. However, this year's Cottonseed production has decreased compared with last year, and the stable operation of cotton oil will support the cottonseed market. Short term cottonseed prices are expected to fluctuate in a narrow range, and the overall future market will still be stronger.

Cotton oil price is stable. As the U.S. soybean is gradually approaching the high level of US $12 / bushel, the cost of soybean import continues to rise, the profit on disk is lost, there is no pressure on soybean oil supply, and the inventory of palm oil and rapeseed oil is also low. Under the background of unchanged global inflation expectation, the bulk oil market is still in an upward trend. At present, cotton oil mills continue to lose money, the willingness to raise prices is still strong, it is expected that the overall future market of cotton oil will still be strong.

Cottonseed meal prices were mainly stable, and some fell. The large amount of soybean arrived in Hong Kong, the supply of raw materials was abundant, the soybean crushing capacity of oil plants remained high, and aquaculture gradually entered the off-season, resulting in a light transaction of soybean meal. The total stock of soybean meal in coastal oil factories was about 1 million tons, increased by 15% compared with last week. Some of them had the phenomenon of warehouse expansion and shutdown, which inhibited the price of cotton meal. In addition, the transaction volume of cotton meal market was relatively light, which brought negative effects to the cotton meal market. But at present, the cost is still high, giving cotton meal support. Short term cottonseed meal is expected to be dominated by narrow range oscillation.

Cotton linter prices are stable. Due to the impact of the epidemic, the downstream market demand is not as good as in previous years, manufacturers' new orders are not much, slow shipment, or drag down the cotton linter market. However, at present, the start-up rate of cotton oil plant is at a low level, and the manufacturers have no pressure on cotton linter inventory. In addition, the quantity of cottonseed is small and the price is high, which temporarily supports the price of cotton linter. Short term cotton linter price is expected to be weak finishing.