Cotton Prices Continue To Weaken After Takeover

The price of domestic cotton market has dropped considerably. The average price of the national cotton price A index (CNCotton A), representing the price of 2129B cotton in the mainland, is 14564 yuan / ton, down 395 yuan / ton compared with last week. The average price of B index (CNCotton B) of the national cotton price on behalf of the 3128B cotton grade in the mainland is 13974 yuan / ton, down 438 yuan / ton.

During the week, the domestic cotton purchase market was even more deserted. The acquisition of seed cotton in the the Yellow River River Basin was completed by about 70%, but the purchase and sale situation was similar to that of the previous years. The acquisition of cotton in the Yangtze River valley came to an end, and seed cotton prices were all 2.8-3.0 yuan / Jin. With the temperature falling to -10 degrees Celsius in Xinjiang cotton area, the picking of cotton seeds in the large cotton area has ended. The activity of seed cotton market has gradually decreased. The 40% cotton seed cotton benchmark purchase price is 5.70-5.80 yuan / kg, and the highest purchase price is less than 6.10 yuan / kg. It is estimated that the proportion of cotton enterprises that will stop seed cotton acquisition before December 10th will rise sharply.

In the week, the spot price of lint continued to drop. In December 2nd, 3128 cotton linen factories in the mainland quoted 12600-12900 yuan / ton, 4128 grade 12400-12500 yuan / ton, all of which were down 200 yuan / ton compared with November 30th. Xinjiang cotton quotation at Xinjiang platform is much more chaotic than before. On the 3 day, the price of wool for the 2128 and 3128 levels of the Akesu warehouse was quoted at 14000 yuan / ton, 13700-13800 yuan per ton respectively, while the price for delivery of the 3128 grade cotton platform in Bachu was reduced to 13500-13600 yuan per ton, and the quotation for 2128 level delivery in Korla was 14000-14200 yuan / ton.

When Zhou, domestic pure Cotton yarn Market demand is still weak, inventory sales of downstream fabric manufacturers are slow, raw material procurement enthusiasm is limited, domestic cotton is limited. spot price The decline continued to drag down the pure cotton yarn market. At present, spinning enterprises are still dominated by order production, and the overall market operation rate is difficult to rise. Near the end of the year, part of the textile enterprises are facing the pressure of money back, and some manufacturers choose to sell cash for profit.

Recently, ICE Stage cotton A slight rise, in December 3rd, driven by commercial buying, led to a strong rise and a breakthrough of 60 cents. At present, the pattern of cotton price weakening consolidation is difficult to change, but the purchase by the end of the textile mill will provide some support for cotton prices. Zheng cotton, at present, Xinjiang cotton has moved to the warehouse in the mainland, the market supply has increased, and the price of downstream yarn has not recovered. Textile purchasing is still not active, cotton prices continue to weaken, the short-term rebound pressure is greater, or will maintain oscillation, but from a fundamental point of view, the medium and long term is empty.