Xinjiang: Lint Price Is Stable, Enterprises Maintain Price Sales

It is understood that as of November 30, 2020, Xinjiang lint inspection volume was 3.1804 million tons, of which Xinjiang cotton processing progress reached more than 70%. A large number of new cotton listed, in the case of no obvious improvement in consumption, supply pressure will increase.

Xinjiang cotton processing is coming to an end, the enterprise mentality is relatively calm, there is no rush to sell the phenomenon, the spot price is basically stable. Zheng Mian maintained a choppy upward trend, and the recent high point of cf2105 contract was 14690 yuan / T, which did not give the company a good hedging position. With the end of Xinjiang cotton processing season, lint cost is becoming more and more clear, with Xinjiang basically no more than 14500 yuan / ton. However, after excluding the cost of basis, finance, storage and delivery, the current price is not attractive to most enterprises. On the one hand, the futures price is rising, and the enthusiasm of spot price is poor. On the other hand, the spot sales volume is limited, and the ginning enterprises are still facing certain sales pressure.

In the face of sales pressure, enterprises are not in a hurry to reduce prices and promote sales. After busy acquisition and processing, enterprises have just entered the sales link. Although they are facing sales pressure in the short term, most enterprises are still willing to store cotton for sale out of the grasp of sales profits and market conditions. They expect that the market will turn better in the future and bring good sales profits. The mentality of the market after gambling is relatively common.

A cotton professional in Xinjiang said that the current enterprise capital pressure is not big, and has the ability to resist the weak market. In the later stage, if the market does not turn better as expected, coupled with capital pressure, enterprises with poor capital turnover may take the way of price reduction and promotion to recover cash, and then the market may hit the bottom.

On the whole, with the increasing supply of raw materials and the seasonal decline of consumption, it is expected that short-term cotton prices will not have a bright performance.