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The Cotton Price Difference Can Not Afford Most Cotton Enterprises.

2016/11/4 11:39:00 46

CottonCotton PricesSpreads

Now the market purchase has not started yet, and the spot market has not formed the real paction price. Although the price inversion appears in the market, but because of the small volume, it can not represent the mainstream price of the market.

Moreover, under the pressure of new flower listing and cotton enterprises eager to sell, the price drop is naturally reasonable.

The near future,

Zheng cotton

Continuous sharp callback to about 15000 yuan / ton, many people feel that cotton enterprises pressure mountain, facing the risk of being locked up, after all, such a disk price has been far lower than the lint cost price, then is it really like others say cotton enterprise life hang a line?

Now the market spot prices follow the trend of Zheng cotton price and become the vane of spot.

Today, Zhengzhou cotton has experienced a big decline, which is more than expected by most people. It has once again attracted market attention, especially when prices fall to 15000 yuan / ton mark. Market participants have predicted that cotton enterprises in the spot market will also be deeply locked up.

For cotton enterprises, there is a lot of pressure at the moment. The high cost of seed cotton in the early stage has led to a higher cost of lint processing than the market price of 1000 yuan / ton. Such a big price difference is not affordable for most cotton enterprises.

After the early rush to catch up, the seed cotton market gradually cooled down in late 10, and cotton and cotton farmers returned to reason.

Price

The price of machine picked cotton fell from nearly 7 yuan per kilogram to 6.4-6.5 yuan / kg.

At this time, the market of cotton sales has not started, although the market appears 15800 yuan / ton quotation, but almost no paction, facing the shock of the cotton market, the upstream and downstream enterprises are still in the market.

Cotton companies seem to be struggling and face loans.

Financial pressure

In order to face the pressure of sales.

Despite the difficulties, I think it is too early to predict whether cotton enterprises can be locked up.

Downstream textile enterprises because of adequate inventory, before November, there is basically no impulse to purchase, if the textile enterprises once started purchasing in November, then cotton prices will rebound, as for how much rebound, depends on the purchasing strength of textile enterprises.


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