Why Zheng Cotton Warehouse Receipt Is Not Popular With Textile Enterprises?

July 16-19 in 2020 / 21, the public weight quotation of Xinjiang machine picked cotton in Henan, Jiangsu, Shandong and other inland warehouses in 2020 / 21 was 17150-17350 yuan / ton (some differences due to different specific indicators and warehouses). Regardless of color grade, quality and other factors, the spot price was only 250-400 yuan / ton higher than the reserve Xinjiang cotton.

At present, the panel price of zhengmian cf2109 contract is 16700-17000 yuan / ton, which is in line with or inversely linked with the transaction price of Xinjiang reserved cotton, which is 200-500 yuan / ton lower than that of "shuang28" Xinjiang machine picked cotton in mainland warehouse. However, Zheng cotton warehouse receipt corresponds to 3128b level, and 100% of warehouse receipt is 2020 / 21 cotton.

According to statistics, as of July 16, there were 15198 Zheng cotton warehouse receipts, a decrease of 1445 compared with that of June 30, indicating that although the outflow of Zheng cotton warehouse receipts has increased in recent one month, the attention paid to Xinjiang cotton reserves is still low. The author thinks that there are still three factors that restrict the textile enterprises to receive Zhengzhou cotton warehouse receipts

1、 If the transportation, ex warehouse, insurance and other expenses are taken into account, the sales price of the warehouse receipt in the mainland is still higher than 400-500 yuan / ton of Xinjiang cotton reserves; 2、 In 2020 / 21, Xinjiang cotton grade and quality index will decline, cotton traders, futures company, ginning plant and other low-quality cotton will be heavily hedged (as long as the warehouse receipt generation standard is met, the discount is generally high). Textile enterprises are worried that the quality and spinnability of warehouse receipt matching for delivery are too low to meet the spinning requirements; 3、 The hedging order of cotton enterprises is recognized as sold by most loan banks and included in the loan repayment progress, which does not affect the credit qualification application in 2021 / 22. Therefore, the basis difference of cotton trading enterprises and futures companies is high, and there is little room for purchasing negotiation.