How Are The Parties In The Nearby Cotton Market Performing?

In November 14th, the State Grain and materials Reserve Bureau officially announced that it would carry out the storage cotton rotation in December 2nd. In the twinkling of an eye, it has entered the countdown stage since the official turn in, but compared with the enthusiasm of entering the market in the past years, this year, the market parties are more calm. According to the national cotton market monitoring system statistics, last week, the national cotton price B index averaged 13016 yuan / ton, a rise of 85 yuan / ton; the average price of Zhengzhou cotton futures contract settlement was 12862 yuan / ton, a decrease of 61 yuan / ton, or 0.47%. Compared with the spot market, the price of cotton futures is insufficient to support the weak operation.

As of November 21st, the total number of processing lint 2 million 947 thousand tons, 2 million 394 thousand tons of public inspection, the number of cotton processing continued to increase rapidly, the supply side tended to be loose, and domestic commercial inventories rebounded again. Due to the recent price discount of futures prices, some cotton ginning factories have kept the price of cotton seed at a later stage, and the cost of lint processing is relatively high. At present, most gin plants have a steady state of mind and continue to be busy in speeding up the public inspection and waiting for the right time to enter the market.

Since late November, the demand for raw cotton in the lower reaches of textile industry has decreased significantly compared with that in October, mainly due to the following reasons: first, the end of the traditional textile peak season and the very small number of new orders; the textile enterprises have difficulty in increasing the demand for cotton under the mode of fixed production; two, the former part of the textile enterprises purchase new cotton in Xinjiang, but with the upturn of the processing cost of lint cotton in Xinjiang, the price of lint in the inner cotton ginning factory has been rising continuously, and the acceptance of textile enterprises has declined, waiting for the late price spot leak mentality to breed; three, some of the previous year's cotton prices are higher than the others, and the new cotton is not dominant, which once again restricts the digestion of lint. The downstream textile enterprises have maintained the accompanying mining strategy, and the strategy of on-demand procurement has not been significantly adjusted.

Similar to cotton ginning factories and downstream textile enterprises, the cotton trade enterprises are also relatively calm. Due to the risk shock brought by the sharp fall in cotton prices this year, trade enterprises are more cautious in adopting dual line mode, not big stockpiling, and do not gamble blindly. According to market trend, we should lock in reasonable income and stabilize operation as the basic premise.

With the arrival of countdown of the cotton reserve, the development of this year's round will be needed. The industry needs to plan ahead. However, no matter how the rules are formulated, stabilizing the market will be the main purpose of the policy implementation. According to the requirements of this year's reserve cotton wheel entry documents, the total reserves will be around 500 thousand tons, and the daily auction will be about 7000 tons. It clearly controls the storage and storage rhythm from quantity. The enterprises entering into storage should make reasonable plans according to their own circumstances, and timely and properly operate the storage, so as to avoid the phenomenon of unqualified quality of centralized storage or storage.