Global Cotton Inventory Down, Domestic And Foreign Cotton Prices Rise

1、 Price quotation

The price of 3128b lint was around 16846 yuan / ton on the 14th, up 285 yuan / ton or 1.72% over last Friday, and 4.07% month on month.

2、 Market analysis

The domestic cotton market rose steadily. On July 14, the average price of 3128b cotton index in China was 16779 yuan / ton, which was 126 yuan / ton higher than the previous day. In China, due to the price, quality, flexible purchasing and other factors, the reserved cotton wheel is welcomed by textile enterprises, and all transactions are completed on that day. On July 13, the weight of the reserved cotton sold was 9552.797 tons, with an average transaction price of 16506 yuan / ton, and the price of 3128b was 17761 yuan / ton. On July 14, the settlement price of zhengmian's main 2109 contract was 16700 yuan / ton, up 2.4% over last Friday.

According to the global production and demand forecast released by the U.S. Department of agriculture in July, the global cotton final inventory will be reduced by 1.6 million bales in 2021 / 22. Global consumption is expected to continue to recover, global cotton inventory consumption ratio continued to decline, so after the release of the report, US cotton closed up, Zheng cotton prices rose in response to this impact.

3、 Downstream industry chain

In terms of cotton spot, the overall purchase intention of textile enterprises is still weak, mainly rigid demand procurement. Downstream, with the recent rise in Zheng cotton and Zheng yarn prices, some textile enterprises raised yarn prices, but the transaction did not improve. Cotton mills mainly deliver goods in advance orders, with low spot stock, and pay attention to the situation of new orders. The hot storage of reserve cotton shows that the downstream demand is acceptable, and the market is relatively optimistic, and the decline of global cotton final inventory supports the cotton price.

(source: Business Club)