Will Cotton Prices Rise During The Turn?

With the reduction of cotton production resources and the large stock of state treasury resources, the state has done a lot to maintain industrial stability and give priority to ensuring the production and operation of textile enterprises.

Especially in the case of cotton production, supply and marketing, once the supply exceeds demand and the country has a large stock of stocks, the implementation of reserve cotton priority

To eliminate the problem of raw material supply, the state has achieved the expected goal in resolving the problem of reducing domestic cotton inventory and gradually making the cotton production, supply and marketing resources achieve a scientific balance.

This year, domestic textile momentum has picked up, profit margins are small, and textile production and sales have been strong. The industry recognizes that this is inseparable from the implementation of the new cotton policy, especially the low price and standardized production of cotton reserves.

Of course, Xinjiang cotton's market show is equally brilliant whether it is being sold or sold.

In recent years, Xinjiang cotton has basically dominated the raw material market of textile enterprises, and the difficulty of mining and supply has gradually disappeared or narrowed under the constraints of geographical, pportation and climate factors.

Remember that at the beginning of the turn, what the enterprises are most concerned about is the year of the rotation cotton reserves. What is the quality structure state? Is there a big difference between the output and the turnover volume? Will it lead to a cotton price rise during the turn? In fact, the situation of cotton circulation is steady and orderly, and the cotton industry is in a good trend. The vast majority of cotton enterprises are running normally.

As cotton market showed signs of improvement in 2017, most enterprises said that as long as the matching of funds and markets is effective and effective, cotton prices will still be hidden in the future, and everyone is hopeful of revitalizing the cotton industry.

The near future

The sharp rise in paction rate is not the evidence that the market will soon usher in "bright".

Zheng cotton is really as expected to break through 17000 yuan / ton.

On the 16 day, Zheng cotton rose slowly.

The rise of Zheng cotton is driven by the sharp rise in ICE cotton. But according to the May Global Forecast of production and demand released by the US Department of agriculture, the cotton planting area will rebound to nearly 3 years high in 2017, and the global output is expected to grow by nearly 7%.

This brings uplink resistance to ICE cotton, and there are more variables in Zheng cotton later stage.

The downstream consumption was not obviously good.

Recently, domestic cotton yarn market is stable and weak. Pure cotton yarn except general combs 32S, 40S, combed 21S sales are still available, other yarn branches are generally weak, orders are short, short and scattered, and the profit margins of spinning enterprises have dropped by 400-500 yuan / ton recently.

In this case, it is self-evident whether the high cotton price can be supported.

The global cotton market is undergoing many profound changes under the influence of unexpected "ICE".

First, the three trading days of ICE rose from 76.38 cents / pound to 87.18 cents / pound, the highest increase of more than 14%, reaching a new high of nearly three years, followed by a sharp fall of 4.57% per day, and severe concussion order.

此起比伏，但突破長期壓力位80美分/磅關口意義重大;其二，期棉突破，帶動外棉現貨紛紛創出近幾年新高，內外棉差價近一年以來首次出現倒掛現象;其三，今年以來，特別是3月份儲備棉輪出后，內外紗價格倒掛逐漸加大，目前價差已經拉大至600元/噸以上，國產紗優勢盡顯; 其四，Cotlook A指數與印度國內S-6價格價差驟然擴大，印度棉紗競爭力能否借此得到恢復?其五，棉價保持堅挺或上漲，而同期粘短、滌短價格則沖高后大幅調整，棉花與粘膠短纖價差已經從-1500元擴大至1000元/噸，而棉花與滌綸短纖價差也從5000元/噸左右擴大至9000元/噸水平，非棉纖維的價格優勢正在顯現，棉與非棉纖維的消費爭奪或將繼續上演。

Six, the profits of cotton spinning enterprises, which are dominated by the middle and low branches, are largely based on the raw material dividends from dumping.

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