Why Is The Market Bleak When Cotton Reserves Are Sold?

The cotton market has always been the focus of attention this year. What is the trend of the cotton market before the new cotton is about to go public?

As of August 18th, approaching

The end is less than 10 working days, generally speaking, the enthusiasm is not high, the paction is not good.

As of yesterday, a total of 51460.1223 tons of cotton reserves were sold, with a turnover ratio of 4.02%, which is far below the expected volume.

Why is the sale of the storage business cold and clear? There is a gap between the outgoing cotton resources and the actual demand of the textile enterprises, and the textile enterprises can not find the right cotton quality. The two problems are that the market is not short of cotton, the spinning enterprises are buying the cotton from the market, the procedures are simple and the goods are coming fast; three, the small and medium-sized textile enterprises are under the pressure of funds, and the purchasing power is weak; four, the stock of spinning enterprises is very large, and it is in the off-season, and the downstream orders are insufficient; five, the cotton prices continue to descend, and the new cotton market is uncertain, most of which are purchased with the purchase, and the ordering quantity is less; six, the cotton and flax companies of various divisions begin to price the auction machine to pick up cotton resources, attracting some textile enterprises to purchase.

It is understood that the purchase of national cotton store has the following situations. First, some enterprises hold a tentative attitude towards the purchase of national cotton reserves, commonly known as bumping into luck; the two is for the urgent need to cotton or spin low count yarn, mostly concentrated in spinning C32S and below products.

According to the purchase of cotton reserves and have arrived at the spinning enterprises, the phenomenon of reserve cotton weight loss is more prominent, cotton color is also problematic, so the subsequent purchase mood is even lower.

However, such as follow up

If the supply is insufficient, the new cotton market is not sure, and the textile enterprises may buy some.

In the final analysis, the price of national cotton reserves is policy pricing. No matter what the original intention is, it is put at a higher price than the market price, resulting in the market not buying.

Because of the weak demand, the national cotton storage has become a topic of high altitude. The root of the problem should be found on the root. This is the huge inventory of cotton in China, the terminal demand is in the off-season, the supply is greater than demand, and the supply and demand imbalance.

The turn out has aggravated the global oversupply situation, and domestic and foreign cotton futures market prices have declined.

The price of throwing and storing will limit the rising space of cotton in the short term, and it will impact the import yarn. But in the long run, the price difference between inside and outside cotton will continue to shrink, and it will have little effect on the import yarn.

What will happen to the cotton market? We can only wait and hope that there will be a good turnaround.