Cotton Yarn Spot Down, Futures Up More Than 1%

Price: on the 15th, the price of 32S cotton yarn was 30333 yuan / ton, down 1.09% month on month.

Analysis: futures, cotton yarn futures today a change before the decline, up more than 1%. The cotton yield data of 2021 released yesterday was 3.0% lower than last year. The cotton yarn spot market continued to be weak, and the decline slowed down compared with the previous period. The downstream textile enterprises purchased more on demand, and the cotton yarn prices showed a downward trend in the near future. At present, the cotton yarn inventory pressure is large, far higher than the same period last year, the overall market demand is insufficient. In the past month and a half, the cotton yarn market is in a downward channel. Despite the support of the upstream cotton market, the downstream demand has been in a downturn for a long time. The textile enterprises have great resistance to the high cotton price, and the cost transmission to the downstream is not smooth. On the downstream side, the expectation of replenishment in the textile market before the Spring Festival is weakening, and the domestic and foreign sales orders continue to be weak. In addition to the recent upgrading of epidemic prevention measures in many places in Zhejiang, most of them are textile raw material production bases, involving chemical fiber, weaving, printing and dyeing, logistics and other aspects. Many enterprises stop production, which will affect the textile market demand in a short period of time, and the downstream procurement will be more cautious.

Forecast: near the end of the year, the market is gradually stepping into the off-season, businesses have a strong mentality of de stocking and withdrawing funds, and it is expected that the short-term cotton yarn market will maintain a weak operation.