Cotton Purchase And Storage "Landing" Did Not Rise After The Market Trend Is Also Mainly Demand.

In the middle of November, cotton yarn turnover unexpectedly weakened this week. As of November 14th, the domestic C32S average price closed at 20662 yuan / ton, compared with last week, it continued to rise slightly by 15 yuan / ton, up 197 yuan / ton compared with the same period last month.

From the start of yarn inventory, the operating rate of textile enterprises continued to increase slightly this week, but the trading market was weakening. As of 14 days, China's textile enterprises yarn stock remained at about 19 days. Since the beginning of September, yarn inventory has been declining, as of last week, which has been lower than the same period last year, but this week rebounded, and the overall inventory pressure of textile enterprises eased slightly. According to the varieties, the cotton yarn market has been differentiated sharply in recent years, and the conventional combed yarn is still the best seller; combed pure cotton yarn is obviously weaker than the regular combed variety; the high count pure cotton yarn is relatively smooth. Part of the textile enterprises because of the higher inventory of early enterprises, still to digest their own inventory. At present, small and micro textile enterprises are generally reflected by large and medium-sized textile enterprises. Although sales have improved, the purchasing intention of downstream enterprises is still limited. In this case, large inventory enterprises still haven't increased their prices, while large quantities can also offer a preferential price of 100-500 yuan. Some small textile enterprises offer a slight rise in price, while those with no stock are strongly quoted and have a strong desire to raise prices.

The downstream fabric market is somewhat "exaggerated". Recently, the whole winter order of the weaving factory has ended, and the spring and summer order is also the inquiry and proofing, which is not much. It also explains why the grey fabric inventory has come to a "180 degree turn". Taking into account the earlier this year, the end of the year to repay, plus workers wages and other issues, the major weaving mills liquidity is relatively scarce, from the expectations of the market outlook, demand is also difficult to improve over the years. At present, the weaving plant starts to maintain stability, maintaining at around 57.5%. However, if the subsequent orders continue to fade, the starting load will gradually slow down and prepare for the new year ahead of schedule.

Today, the Ministry of Finance and the Ministry of Finance issued a formal announcement that it decided to turn in 500 thousand tons of Xinjiang cotton. However, as the previous "wind" has spread all over the world, everyone has already prepared for it. Today, Zheng cotton main force has not shown "great good". Compared with yesterday, Zheng cotton main force reported 13020 yuan / ton, only 0.08% higher than yesterday. From the perspective of macro information, in early October, cotton prices rose all the way in the support of good news from China and the United States, and the expected reduction in Xinjiang cotton production in Northern Xinjiang. However, because of the blockage of the downstream industry chain, traders are more enthusiastic about purchasing cotton, and the spinning enterprises are still cautious. On the other hand, the relevant departments originally planned to import 80-100 million tons of 2019/20 cotton, as part of Sino US trade consultation on the purchase of US agricultural products. A few days ago, the Ministry of Commerce issued a voice, and the United States and China were discussing the extent of the abolition of the tariff increase. Now it seems that the US side still does not agree to cancel the tariffs imposed on China's import commodities in March 2018, which leads to the signing of the first stage agreement and deadlock. Naturally, the purchase of US cotton can only be temporarily stranded. Therefore, we must go back to the next level, and first we will take up 500 thousand tons of Xinjiang cotton.

Generally speaking, the yarn market is still good, but it is obviously not as good as last month. The cotton rotation policy is limited and the benefits from the macro side can not give the company the actual benefits. Downstream textile mills show that the market has shown signs of reduced demand just now. After the implementation of the purchase and storage, the trend of cotton can not be seen. The stocking situation is still unknown, and most factories still rely on wait-and-see mentality.