Domestic Cotton Spot Bottom Stabilization, Late Procurement Is Relatively Active.

Upper and middle, domestic

The spot market continued to digest the bad expectation of wheel storage, and the total price dropped sharply to 400 yuan / ton. The price of high and low grade cotton was seriously differentiated, and the market turnover was still light.

Textile enterprises are cautious in entering the market, and the market is mainly based on rigid demand.

In the near future, the regulation and control policy of cotton market is intensive. First of all, the policy of cotton reserve rotation in March 17th was initially clear, and the time was postponed to the end of 4. In the following 18 days, the national development and Reform Commission announced that the target price of cotton in Xinjiang in 2016 was 18600 yuan / ton (down 500 yuan / ton compared with last year).

Storage time is lower than market expectations, raw material inventory is generally low.

The need for phased demand replenishment has brought a rare opportunity for shipments to cotton enterprises, and the target price is much higher than the current spot price level. The above advantages support the spot price stabilization in the latter half of the year, and the market inquiry purchase is more active than before. The turnover has recovered slightly, and the middle and low grade cotton shipments have been improved by the recovery of the low count yarn regular yarn sales.

It is expected that the increase in cotton prices will continue until early April.

According to statistics in March 31st, China's cotton price index CCindex3128B decreased by 412 yuan (-3.41%) to 11678 yuan / ton, and the price was 1088 yuan / ton higher than that of electronic matching 1604 contracts, 763 yuan / ton higher than that of Zheng cotton futures 1605 contracts.

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Resources are decreasing. In late days, the prices of some high-quality Xinjiang cotton and real estate cotton increased slightly by 50-100 yuan / ton, and the prices of some medium and low grade cotton decreased slightly.

On 29-30 March, the Akesu platform 3128C2 (2128C2) level (fracture strength 27.5-28CN) hand picked cotton inspection gross weight quoted price 11500-11700 yuan / ton, and 2128C2 grade (breaking strength 28-28.5CN) the price of lint weight 11800-12000 yuan / ton, 2128B2 level (break strength 28.5CN above) leather cotton price 12100-12200 yuan / ton.

Anhui real estate lint 3128, 4128 level offer are 11600-11800 yuan / ton, 11500 yuan / ton (delivery, with tickets, cash).

However, the Xinjiang regiment cotton is no longer very expensive, the price is lowered, and the quotation of Xinjiang cotton in the Hebei Province is second: the 2127C2 cotton (3127C2) level is 11700 yuan / ton, the third division 2128C2 level is 12250 yuan / ton (Jiashi 12100 12100 yuan / ton), the gross weight of the former is 12300 yuan / ton, the local cotton 3128C2 (breaking strength 27CN-28CN) and the 2128C2 (break strength 28CN-28.5CN) grade gross weight quotations are 11700 yuan / ton, 12000-12100 yuan / ton, respectively, which are reduced by 200-300 yuan per ton.