What Is The Rising Price Of Cotton Market?

As cotton planting area has been decreasing year by year, cotton production has declined, and market supply has been tight. In order to solve the problem of lack of cotton in the spot market and stock reserve, the auction price of the national cotton store started from 12428 yuan / ton to today's 14376 yuan / ton, which rose 1948 yuan / ton in less than 3 months. Under the current strong domestic and foreign cotton prices, the domestic textile enterprises have been calling for increasing the amount of cotton reserves and prolonging the throwing time, so as to link up with the new cotton market. However, it is also feared that if the policy changes, the cotton prices will drop sharply, and the enterprises will have a more severe blow to the enterprises that have already taken the storage. Although the market is difficult to move forward and withdraw two times, the textile enterprises also hope that the policy will be clear at the early stage of the policy and make early plans for the May 3rd.

Affected by the high price of cotton prices, in order to ensure the profit margins of production and processing, the downstream cotton gauze factories have been raising their prices. The price of the spot market is strong, and the 29 hand picking price of the national cotton and cotton real estate has been raised at 15700 yuan / ton, and the Xinjiang cotton newspaper is 15800-15900 yuan / ton. Most of the customers have high price conflicts, but there are also individual customers accepting sporadic turnover. Last week, Zheng cotton futures fell downward, the CF701 contract closed at weekend price of 15195 yuan / ton, and the price of Zheng cotton has been far lower than the average price of the national cotton store. Despite the decline of Zheng period, the spot market still maintained a high price. The main reasons for the analysis are as follows:

First, as cotton prices rise all the way, downstream Cotton spinning enterprise The price of most yarns has been on the rise, and the pressure from lint rise is gradually spreading to the downstream fabric market. In this month, take the Dezhou area of Shandong as an example, the leading enterprises in the first half of the year and the middle of the century raised their quotations in a row, and the 40 cotton yarns of the combed rings increased from 21700 yuan / ton to 24700 yuan / ton, up 3000 yuan / ton. The cost side is rising rapidly, and the pure cotton fabric enterprises have been raising their prices for sale. It is reported that the C21S*21S 108*58 63 of Shandong Binzhou area has risen to 8.2 yuan / m after 3 times of adjustment, up 1 yuan / meter from the previous stage.

Two. The mainland is affected by rainwater weather. cotton When the scale is delayed or delayed, the storehouse is affected. Since entering the middle of 7 months, many provinces in the country have been hit by rainstorms and have entered the "rainstorm mode". Recently, the daily precipitation in Hebei has exceeded the extreme value of the same period in history, causing widespread damage. The disaster involved 91 counties (cities and districts) of 11 cities, such as Xingtai, Handan, Shijiazhuang, Hengshui and Baoding. The area of crops affected by the disaster was 148 thousand and 200 hectares, and the total harvest was 7 thousand and 300 hectares. At present, cotton is the peak period of cotton boll production. The water accumulation in cotton fields is large and the air humidity is high. The occurrence of cotton diseases and insect pests and the rate of abscission of bolls and bolls have been increased, and the total cotton yield has been affected.

Since June, six consecutive heavy rainfalls in Hubei have made the cotton production situation more severe. The area of cotton fields affected by the province is more than 60%, with a total area of over 10%. Besides Jingzhou, Xiangyang Yichang and other places reflect that the disaster situation is relatively low, and other areas have varying degrees of losses. Among them, cotton fields in Tianmen, Jingmen, Huanggang, Jiangxia and other places are severely affected. Some of the worst affected cotton fields have not yet completely receded, and cotton farmers have given up management and nearly lost their crops. The reduction of cotton listed resources in the new year will support the high and stable prices of cotton prices, and the cotton notarization test in the areas where more rain is currently affected will be affected. Some warehouses are difficult to deliver because of the fact that the cotton is placed in the bulk cargo area. After the rain, the weather clears up and the 3-4 days can go out. The spot resources of the market are in a more tense situation. For the textile enterprises with low inventory level, in order to ensure production, they have to continue to purchase raw materials at high prices.

Three, reserve cotton auction base price continues to improve, the number of follow-up rounds will be reduced. It is understood that the reserve cotton wheel for thirteenth weeks (July 25th -7 month 29 days a week) out of the selling base price of 14376 yuan / ton, compared to twelfth weeks 13609 yuan / ton price increase of 767 yuan / ton, the increase in the base price will stimulate the national cotton store high price position. In recent years, the national cotton storage 100% turnover rate, as of July 22nd, has accumulated more than 147.7 tons, and if the number of 2 million tons is announced by the state and the end of August will be calculated, the average daily output of resources will be only 1.87 million tons in the late period, which is much less than the expected daily output of 30 thousand tons. The tight supply of resources will directly lead to the continued upgrading of auction prices.