The Continuous Ultra-High Cotton Price Directly Affects The Purchase Of Textile Enterprises

On Friday, the global stock markets fell, the three major stock indexes of the U.S. stock market dived continuously, and the commodity sales immediately appeared, and the prices showed obvious correction.

At the same time, the ultra-high cotton price has basically strangled the purchase of textile enterprises. American cotton exports have been declining for several weeks in a row. In recent two weeks, the signing of contracts has reached a new annual low, and the shipment of American cotton has not been back on track.

According to foreign industry estimates, according to the current shipping speed, the US cotton export volume may be only 14.5 million bales, lower than the current forecast of 14.75 million bales, and the final inventory of American cotton will rise to 3.8-3.9 million bales, higher than the current 3.5 million bales. It should be noted that even if the price of cotton falls to the current level, there is no obvious help to boost the demand. Recently, the global textile industry chain is under general pressure, and the upstream and downstream demand encounters obvious resistance, and the signs of demand weakening are becoming more and more obvious.

Looking back at the first half of this year, ice disk can stay around 120 cents for a long time. The reason is that this price can keep the purchasing demand stable and the factory can still digest it. However, the cotton price has risen too fast recently, which has completely lost the purchasing power of the factory.

After the may contract delivery, the market's attention turned to the July contract. Although the number of point price orders in July is as high as 6.3 million packages, and the market is likely to rise again in the next two months, in essence, most of these purchases are advanced and excessive purchases caused by the supply chain crisis, rather than the real level of demand. The current high cotton price and many uncertainties on the macro level will have a negative impact on cotton demand, which is unfavorable to the medium and long-term trend of cotton price.

In addition, the hype about the weather should not be overstated. In the face of the global cotton expansion, it is still a question mark whether the cotton demand in the later stage can be maintained.