Macro Policy Stability Is The First, Domestic Cotton Prices Continue To Be Stable

Since the last ten days of June, the central bank has launched small-scale liquidity investment, which has achieved stable cross quarter liquidity. Recently, the central bank once again stressed that it is necessary to implement monetary policy flexibly and accurately, so as to further reduce the real loan interest rate. In terms of the domestic cotton market, Xinjiang's cotton has been growing better recently, and cotton has gradually entered the period of full bud and flower and boll. It is expected that cotton topping will be carried out after July. In the spot market, the trend of "additional bonded cotton and less non bonded cotton" has been observed in the cotton warehouses outside China's main ports recently; Next week, the rotation of reserve cotton will be opened, and 600000 tons of cotton will be delivered from July 5 to September 30. In principle, balanced delivery will be implemented. Once again, the circuit breaker mechanism was adopted to maintain the smooth operation of the market. At present, the downstream spinning profit is still above 1500 yuan / ton. However, the textile market has entered the off-season, and the cotton yarn inventory of traders is high. Recently, the price of cotton mills is not enough, and they are worried that they will be resisted by downstream customers. With the start of the reserved cotton rotation work, domestic textile enterprises will have the opportunity to purchase more cost-effective cotton resources, which is conducive to improving the competitive advantage of domestic yarn. Under the guidance of relatively stable policy, the domestic cotton price is expected to run smoothly.