Xinjiang: Cotton Prices Echoed Small Cotton Companies Rebound

A few days ago, the CF1905 contract price rose to 15300-15500 yuan / ton, and the enthusiasm of spot sales and futures arbitrage of cotton processing enterprises in the territory rose significantly. The market is showing signs of "warming up and thawing" before the end of the market. Some 1 and February financial pressure liquidation and the withdrawal of cash flow were accelerated.

Several cotton enterprises in Akesu, Bachu and Northern Xinjiang indicated that the direct effects of ICE and Zheng cotton rebounding are as follows: first, the mainland cotton traders who have been on the wait-and-see stage have increased their inquiries, goods and procurement activity; two, the volume of freight cars and warehouses within the territory's regulatory library has increased significantly.

According to statistics, when the week (January 14-20), Xinjiang cotton road pport volume increased by 24% compared with last week, of which traders shipped more than 70%; three is the "double 28/ double 29/ double 30" high quality supply of goods, the cotton enterprises reluctant to sell emotions weakened, high and low quality "bundled" to sell or require a single purchase 3 batches and more of the phenomenon is rare.

On the 21-22 day of January, the Korla and Akesu regulatory libraries in southern Xinjiang, "double 29" hand picked cotton (impurity 1.2% or even less than 1%), offered a gross weight of 15900-16000 yuan / ton, and "double 28" (including mixed 1.3% or less) gross weight delivery price 15800-15900 yuan / ton (Korla futures delivery warehouse cotton quotation generally slightly higher 50-100 yuan / ton), which was up to 200-300 yuan / ton compared with the lowest point in late December.

The price of cotton picking machine in the north of Xinjiang was also rebounded by Zheng cotton. Traders' enquiry and replenishment were generally reported to be 200 yuan / ton. On the 22 day, the Kuitun warehouse "double 29" machine picked cotton (including less than 2.5%) gross weight and offered 15700-15800 yuan / ton.

What is the reason why Xinjiang cotton is quoted again for shipment?

Industry analysis: first, CF1905 broke 15200 yuan / ton, plus high quality cotton water, "base" sales or direct Zhengbao cotton business income rebounded; second, 2018/19 Xinjiang cotton production is expected to be flat or slightly higher than the previous year, and the quality and level of public inspection improved significantly; the third part of Xinjiang cotton processing plant in January and March faced greater pressure to issue loans, and could only choose pledge financing or sell some cotton.

But today, Zheng cotton has risen, and the spot market will see new changes.