Rush Orders For Cotton Traders Are Likely To Be "Caught".

Cotton mills in Henan, Hubei and other places analyzed that the cost pressure of cotton raw materials rising sharply has been gradually pferred to yarn, cloth and clothing recently. However, compared with CF1701 and national cotton store, the price of cotton yarn rose only 500-1000 yuan / ton (actually 300-800 yuan / ton) in the short 20 days up to 2690 yuan / ton and 1913 yuan / ton.

A 50 thousand spindles cotton mill in Henan reflects that the spot price quotas in 2015/16 cotton market are more exaggerated because of the increase in bid price and paction price of the national cotton auction. The spinning of C21S, C32S and C40S yarn has not only lost profits but has a loss of 500-1000 yuan / ton. In order to complete the order, the textile enterprises can only increase the price to compete for the national cotton reserves from the traders, thus becoming the "executioner" of raising the cotton price.

To form a "dead circle", if we want to jump out of this "strange circle", we only have to cut down production and stop production, and we can only postpone delivery or terminate the contract without order.

It is understood that by the end of June, the domestic Zheng period,

The impact of the increase in bid price and spot price of cotton combined with the increase of violence, the cotton yarn operators and the yarn mill offices in Guangdong, Zhejiang, Jiangsu and other places in order to avoid the risk of "intestinal obstruction" and reduce the pressure of funds have reduced, stopped picking up from cotton mills or postponed purchases. O10S-OE21S, C21-40S yarn inquiry and paction were obviously deserted compared with 5 and June.

Traders said that, on the one hand, the price of cotton yarn of some cotton mills under C40S and below rose by 400-500 yuan / ton, and some large factories even reported 800-1000 yuan / ton, but the downstream intermediaries and weaving mills were not very strong in digestion, and the difficulty in negotiating yarn prices was rising. Traders were worried about "riding a tiger". On the other hand, cotton textile mills, garment enterprises and foreign trade companies had strong expectations on the control of cotton prices by the relevant state departments in the near future. For example, the establishment of national cotton auction "textile special field" and the average daily output of national cotton reserves increased to 50 thousand tons or even 70 thousand tons (non public inspection or sampling 20%-30%), and the issuance of processing trade and sliding tariff cotton.

Wait.

Some agencies and media speculate that the medium and long term rise of cotton has been opened, and the price of cotton yarn, grey cloth, clothing and foreign trade contract will gradually become "logical". The problem of "intestinal obstruction" in the industrial chain will soon be cleared.

"Lower rock" - the interest rate increase and the rebound of commodities are very long. Once again, traders and speculators have been hit by heavy rain, resulting in a serious blow to the real economy of cotton processing enterprises and cotton mills. At the root of the whole national economy, it is impossible for the state to hold about 10000000 tons of national cotton reserves instead of doing it; the government of India will also introduce measures to suppress speculation so that cotton prices will return to normal; in addition, the United States and cotton will grow well, and Australia cotton will enter the Chinese market in large numbers. Brazil cotton, which is of low quality and low price, will become the focus of attention of Chinese textile enterprises. ICE will take the lead. I do not agree with this view: first, the pressure of China's economic data stabilization is great, cotton consumption will fall into a trough after the peak season in 3-6 months. Secondly, not only the EU economy and stability variables are increasing, but also the Fed may well.