Zheng Cotton Plummeted From The Support Level Of Wan 2, Only One Step Away From Cotton Spot Prices.

In August 26th, the main cotton contract of Zheng cotton fell sharply below 12300 yuan / ton, a step away from the strong support level of 12000 yuan / ton, creating a new low in late April 2016, and aggravating the demand for cotton from 8 to September. The spot price of cotton in and out of Xinjiang was significantly reduced by 250-350 yuan / ton.

In August 26th, Henan, Shandong, Jiangsu and other mainland libraries "double 29" Southern Xinjiang hand picked cotton, "double 28" hand picked cotton spot heavy quotes were 12750-12850 yuan / ton, 12500-12600 yuan / ton (the outgoing library fee is borne by the seller, the same below); Northern Xinjiang "double 29" machine picked cotton to 12200-12300 yuan / ton, 3129 level (fracture strength 28-29cN/tex) public offer 12000-12100 yuan / ton. It can be seen that the price reduction rate of machine picked cotton is higher than that of hand picking cotton, and the price difference between the two increases. The quotation of the supervision bank within the territory is much lower than that of the inland bank, and the textile enterprises and middlemen are enthusiastic about the inquiry and receipt of the warehouse receipt cotton.

Is the turnover of Xinjiang cotton rising or not? From the feedback of several warehouses and traders, the sharp reduction in price reduction did not stimulate the spot transaction. The buyer's "bearish" sentiment was more intense with the fall of Zheng cotton. Therefore, procurement only maintained production, and the enterprises could reduce the raw materials and finished product funds as much as possible. I believe that unless cotton control policies and other good news come out from 8 to September, cotton prices will not be the lowest, but only lower.

First of all, from the perspective of demand, Sino US trade war suddenly escalated, and the impact on China's textile and clothing exports will gradually increase. Secondly, the number of warehouse receipts has reached a new high year. It is only a month or more from the new cotton listing in 2019/20. How to digest such a huge amount of warehouse receipts is a problem. Finally, the terminal consumption has not been improved, and the production and sale of "9 or October" season has been lost. From the survey point of view, the textile and garment enterprises in August did not restore their orders clearly, and the proportion of small and medium-sized textile mills that cut production, shut down or even shut down was still growing.