Cotton Lint: Limited Market Supply And Rising Prices

During the week from April 4, 2016 to April 10th, although the oil plants which were shut down in the north were gradually resumed after the soybean arrived, however, due to the slow delivery of soybean meal and the increase in the number of oil refineries shut down due to the expansion of soybean meal, the start-up rate of the oil plant decreased this week.

Affected by the periphery, the purchase price of cottonseed rose steadily during the week, but the market turnover was still scarce.

Cottonseed oil

Continuation of the rally, but mainly because of the cost and supply of scarce support, the actual paction is not much.

Cotton lint mostly rises.

Last week, there were fewer sources of cotton lint.

Continue to rise.

Weekend, part of the cotton lint price: Hebei 4110 yuan / ton near Shandong 3990 yuan / ton near Henan 3880 yuan / ton, jinshaan area 3750-3900 yuan / ton, Xinjiang southern border 2950 yuan / ton.

Cotton lint output is still limited, and oil companies are reluctant to sell at low prices.

The price of cotton lint rose slightly this week.

However, at present, some chemical fiber factories and refinery factories are still cautious about purchasing in the market, and a small part of purchases are mainly based on the purchase and purchase.

Generally speaking, under the background of less supply, it is expected that short term cotton lint will continue to run steadily or steadily throughout the whole year.

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The purpose of policy formulation is to "guide the smooth operation of the market, promote the sustained and healthy development of the industry" and enhance the competitiveness of the textile industry. Therefore, it is necessary to properly block the import yarn on the basis of the digestion of stock, but it will not be realized at the cost of unnecessary sacrifice and inefficient recovery of the inefficient country.

In this sense, the author believes that there is no possibility of blocking the import yarn by price "hard landing", and there is no incentive to reduce the impact of the reserve cotton output base price on the international market.

According to the China cotton information network, the price difference between the CCIndex index and the Cotlook A index has basically been around 1000 yuan since March, and the trend of further narrowing has been narrowed with the recent increase in ICE prices. Compared with last year, the price difference has been further narrowed. The difference between the inside and outside cotton prices is the best in five years, which is not only conducive to the improvement of textile enterprises' market competitiveness, but also to the recovery of textile production capacity.

The monthly imports of yarn continued to decline. At the same time, China Cotton Information Network textile enterprises surveyed that the production capacity of cotton textile enterprises is constantly recovering, the overall level of production capacity in January has risen, and has returned to the level of December 2014. In March, from the current situation, the good situation remains unchanged, and these changes occur before the storage of cotton reserves.

It is pointed out that without the participation of reserve cotton, the current improvement of textile operation status is real, and the cotton spot price is objectively supported by the demand side.