Ginning Factory To Recover Part Of The Cash Market Spot Mentality Eased Gradually

With the increase of sales, the cotton mill also recovered part of the funds, and the pressure of the funds was relatively reduced. Therefore, the mentality of the spot market has gradually stabilized, and spot prices no longer continue to fall.

Downstream, as a result of cotton Prices continue downward, yarn prices also remain weak, but there are two obvious characteristics. First, the decline in yarn prices is slowing down. Combing 40S yarn, for example, dropped 350 yuan / ton in December last year, down 710 yuan / ton in November and 1160 yuan per ton in October. Two is Cotton yarn price The decline is smaller than cotton prices.

Since September 2014, combed 40S yarn prices fell 2900 yuan / ton, or 10%, while cotton prices fell to 3400 yuan / ton during the same period, or 20%. Therefore, Textile enterprises The increase of yarn profits helps to improve the business form of enterprises. However, because the increment of demand has not yet appeared for a while, the stimulation to cotton is not yet reflected.

Due to the narrowing of the spot price at home and abroad and the narrowing of cotton yarn spreads, the number of imported cotton and cotton yarns has decreased significantly, which will increase domestic cotton consumption accordingly.

To sum up, the current sales situation has obviously improved, and the pessimistic mentality of the market caused by financial pressure has gradually resumed, and the possibility of further down the price of cotton is very small. With the easing of monetary policy, the depreciation of the renminbi, the narrowing of the domestic and foreign cotton prices, and the changes in the export tax rebate policy, the cotton consumption in the future will be further enhanced, thus pushing up the domestic cotton prices.

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"At the beginning of October 2014, the market estimated that the output of long staple cotton was 65 thousand tons this year, the result is much lower than the previous estimate, and the market is looking at the rising tide." A cotton trader in Dongying, Shandong, said that not only did some manufacturers in Xinjiang increase the price of long staple cotton slightly, but even the mainland cotton merchants were also "strict against death" for the long staple cotton prices. In January 6, 2015, Shandong, Qingdao, Ji'nan and other places warehouse new quarter long staple cotton out of stock price in 27200-28000 yuan / ton, all with 5 day is equal. Before the new year's day, some cotton merchants and ginning factories often give the downstream buyers 100-150 yuan / ton of negotiation space in actual transactions, and the recent transaction basically "bite dead" prices, showing the market's confidence in the price of long staple cotton.

The reasons for the market's confidence in long staple cotton are as follows:

First, the fine cotton velvet cotton bottomed out is expected to be stronger. Recently, the price of Xinjiang fine wool cotton platform 3128 is stable at 13700-14000 yuan / ton, and the machine picked cotton is basically stable at 13000 yuan / ton line. The price of the 31 grade real estate cotton in the mainland is also stable between 12800-13000 yuan / ton. In addition, there is no change in the price of raw materials purchased by a large group in Shandong, of which 3128 grade lint comes to the factory price of 13000 yuan / ton, and the 4128 level to the factory price is 12500 yuan / ton, the 1228 level to the factory price 12900 yuan / ton, the general cash settlement.

Second, narrow range oscillations in futures. In January 5th, Zheng cotton's CF1501 contract closed 12925 yuan / ton in recent months, and the main CF1505 contract closed at 13030 yuan / ton. At the beginning of the new year, although Zheng cotton had a big jump, it still did not deviate from the 12500-13500 yuan / ton Interval Oscillation market.

Third, at the end of the year, the number of spinning enterprises is increasing. According to some textile enterprises in Ji Lu and Jiangsu and Zhejiang provinces, the inventory of raw materials in recent years is generally low, especially in Xinjiang cotton, American cotton, cotton and long staple cotton stocks. Most of them are scarce. First, resources are scarce, especially cotton and cotton in the United States are hard to see good quality resources. Two, there are insufficient reserves of long staple cotton in the early stage. Recently, there are already many difficulties. Many enterprises intend to order long staple cotton before the Spring Festival.

Fourth, imports of long staple cotton prices remain high. China restricts import quotas, while the price of American Pima cotton and Egypt's gzha cotton is high in the hands of large cotton traders in port logistics area, of which 2 grade Pima cotton sells at 28500 yuan / ton line, 29000 yuan per ton, and it forms support for Xinjiang long staple cotton.

In 2015, how many uplink opportunities were there for long staple cotton? The market believed that long staple cotton had recently been down resistant, indicating that this year's fall was unlikely. Because of the general reduction in domestic cotton production in 2014/15, although the state reserves inventory was supported, the quality was indeed worrying. In the future, high quality cotton flowers, especially long staple cotton "Luoyang paper" are likely to emerge. In short, long staple cotton can be expected in the future.