There Is Still Room For Higher Quality Cotton Prices, But It Is Not Far From The Price Inflection Point.

At present, everyone is looking forward to this year.

The polarization of prices has reached a consensus. The biggest difference is that this polarization will bring much impetus to the price rise of quality cotton, and how long will it last?

Judging from supply, this year's double decline in cotton production and quality is the result.

The main reason for differentiation.

There is no authoritative data for accurate cotton production this year, but from the perspective of the parties, cotton output will be less than 6 million tons. In 2014, the national cotton market monitoring system showed that cotton output was about 6 million 620 thousand tons.

Especially this year.

Due to the drop of cotton planting area and the influence of high temperature weather, most professionals predict that the output of Xinjiang cotton is definitely less than 4 million tons.

Not only this year's cotton production has declined, but also the quality has seen a big decline. Especially in September, the quality of public inspection cotton was not up to standard.

With the mid term flower coming on the market, the current public inspection data is a little relieved.

According to the data, in October 2015, the total length of cotton surveyor in China was 28mm, accounting for 42.58%, 27mm accounted for 34.53%, and the ratio of horse to B2 increased significantly. C2 accounted for 29.38% of the data compared with September, and the ratio of grade to above was 95.28%.

In Shandong research, most enterprises show that the market of high quality cotton resources is increasing much more in the market than in the earlier period, for the choice of space and price space is larger.

What is the downstream demand? According to the China Cotton Association statistics, as of the first three quarters of 2015, the main varieties of yarn production increased mainly in blended yarn and colored spun yarn, but the downstream demand space was limited and the growth rate was small.

Yarn production is reduced by the basic products such as YISHION cotton yarn, combed yarn, medium low count yarn and other conventional products.

In terms of raw materials utilization, the proportion of non cotton fibers increased by 88.2% or more than that of the same year. More than 1/4 enterprises increased the proportion of non cotton fibers.

Some people predict that the demand gap of grade 3128 and above cotton will not exceed 500 thousand tons in 2015. No matter what the real data is, there is no dispute about the shortcoming of high quality cotton.

This shows that there is still room for high quality cotton prices, but after all, downstream demand is not enough to support for too long. Moreover, the state has clearly stated that the reserve cotton rotation will maintain a normal state, indicating that it is likely that the first half of next year will come out again, which will have a great impact on it.

High quality and high price will definitely be the direction of cotton development in the future. The polarization is also expected. However, according to the current development situation, the quality cotton price has not touched the ceiling yet there is still room for improvement, but it is not far from the inflection point of price. Barbarism will never happen.