Cotton Prices Keep Falling In Cotton Market

　　 cotton Domestic cotton prices remain on the decline. Although the yield per unit area has dropped slightly in 2013, the cotton market is still not very optimistic under the pressure of huge domestic inventory. The dumping and storage of future countries will further reduce domestic cotton prices and gradually move closer to international prices. The spot price in the market is more stable, and the dumping and storage continue. The proportion of the transaction is basically stable, the transaction price is rising slightly, and the high-grade cotton is still favored by the textile enterprises, and the competition is more intense.

Cotton yarn: today's whole cotton yarn prices are relatively light, and the cotton mill is mainly active in shipping. They have stepped up sales promotion efforts to reduce inventory pressure, withdraw funds, market scattered transactions, conventional yarns occupy the mainstream, and high-end yarn orders are produced. The overall price of the whole cotton yarn in Qian Qing market is declining. A medium-sized manufacturer in Henan has a stable price of all cotton yarn, and the actual transaction can be appropriately granted. The 40S is highly equipped with close spinning of 29500 yuan / ton, combed tightly spinning 32000 yuan / ton, combed for 31000 yuan / ton. The price of domestic cotton and high spun yarn in Nantong market dropped by 400-500 yuan / ton, and the overall transaction price was chaotic. Now the mainstream price of 40S jet is 27800-28000 yuan / ton, lower 27500 yuan / ton, and the 32S domestic yarn is shipped slowly. Changzhou Hutang market full cotton yarn shipments slow, a Hebei trader magpie ring spinning 21S price 22500 yuan / ton, air spinning price 19600 yuan / ton, most people in the industry reflected that the downstream basically no demand, tight funds, slow repayment. According to some cotton yarn importers in Jiangsu, Zhejiang, Guangdong and other places, with the price of 21S, 32S and CIF of India, Pakistan and Thailand dropped to 2.70-2.75 US dollars / kg, 2.95-3 US dollars / kg, some importers and weaving enterprises in China gradually entered the market, resulting in a rebound in the export volume of the printed yarn, and the delivery time of some cotton mills in some big factories has been discharged until mid January. Rumor has it that 3 large and medium-sized cotton yarn traders in Zhejiang reached the order of 2.2-2.5 million in early December, mainly printed yarn, yarn and a small amount of Thai yarn. They are expected to arrive in Hong Kong after mid January and will be listed in large quantities after mid February.

Entering the December Cotton market Prices continued to decline slightly, down about 0.46% from the beginning of the week, and the current domestic market price is 19480 yuan / ton.

2013 cotton temporary purchase and storage work officially started, 18 began trading. After the National Day holiday, the market reserves increased significantly, boosting the spot price of cotton. Domestic cotton prices have been rising slightly. Until mid November, the domestic cotton market began to show a slump due to the expected impact of the national reserve cotton throwing and storage. On the 28 day, the national cotton store began to throw and store, and the price of throwing and storing was 18000 yuan / ton. As of December 5th, cotton temporary storage and storage totaled 3384120 tons in 2013, and 1545600 tons in Xinjiang. The total volume of transactions in the mainland was 777690 tons, and the total turnover of backbone enterprises totaled 1060830 tons.

Although the planting area has dropped, cotton stocks have not declined, but they keep on backlogging. In November USDA November cotton supply and demand report estimated that the global cotton production in 2013/2014 was 25 million 521 thousand tons, a slight decrease of 0.18% compared with September's estimated value. But cotton stocks have risen sharply by 1%, especially China's cotton stocks, which will account for more than 60% of global inventories in 2014. At the same time, a large number of India's cotton market is now on the market. China's dumping and storage will increase global supply, and China may cancel its purchasing and storage policy in 2014.

At present, the downstream consumption is light. The output of cotton is mainly stored by the state. On the other hand, the domestic price of cotton is upside down. Spin Enterprises are more inclined to purchase imported cotton. We believe that after the sale of state-owned cotton, there will be a large number of high-quality cotton storage in the market. Meanwhile, the demand for downstream textile enterprises is still in the doldrums, and the pressure on cotton stocks will increase. In the future, excess supply will keep cotton prices under pressure, and cotton prices are expected to remain weak in the near future.