The Stagnation Of Xinjiang Cotton Has Stabilized The Cotton Market.

As Xinjiang's pport capacity has increased, some market participants have divided their views on the market outlook. So how will cotton be run in the near future? By November 28th, Akesu's "double 29" hand picked cotton platform picked up a price of 15800-15900 yuan / ton, and the "double 28" machine picked cotton 15100-15200 yuan / ton, all of which were flat compared with last week's five.

The mainland the Yellow River River Basin property 3128 class cotton wrapped price is 15500-15600 yuan / ton, the 3 class small cotton price 14300-15100 yuan / ton, also keeps stable.

At present, the price of seed cotton is still high in China. As of November 28th, the purchase price of seed cotton in the new estate area was 3.45-3.90 yuan / Jin; the purchase price of seed cotton starting scale in Xinjiang area was 3.20-3.50 yuan / Jin, and the individual area in Hebei increased by 0.02 yuan / Jin, and the price of raw materials was still high, and the spot price of cotton seed was good.

In 2016, the cotton planting area in the mainland continued to shrink significantly, and cotton production continued to shrink. Due to the recent drop in cotton enterprises in various parts of the country, cotton processing was also affected, and the cotton stocks in the hands of manufacturers were also relatively tight. Cotton prices remained psychological. In addition, due to the gradual inventory of cotton stocks in textile enterprises, the demand for replenishment was urgently needed.

Recently, Xinjiang's textile enterprises in the mainland have increased their enquiries, and procurement has gradually emerged, which has also boosted confidence in cotton enterprises.

In October, despite the introduction of new cotton, textile enterprises still use cotton as the main source of cotton, and the quantity of cotton imports continued to fall. According to customs statistics, 41 thousand and 300 tons of cotton imported in China in October 2016 decreased by 19 thousand and 600 tons, a decrease of 31.6%, a decrease of 800 tons compared with that of the previous year, a decrease of 1.9%, and a total import of China in the first 10 months of 2016.

696 thousand and 800 tons, down 42.04% compared with the same period last year. In the first 2 months of 2016/17, China imported 101 thousand and 900 tons of cotton, up 9.3%, which added positive benefits to lint.

With the above favorable support, lint prices continued to rise last week, but there are still the following negative factors to curb its rising space.

The US cotton price fell last week as a result of the strong US dollar. As of last Wednesday, the ICE cotton main contract closed at 71.64 cents / pound, down 0.09 cents compared to 72.54 cents / pound in the same period last week.

Last week, Zheng cotton prices continued to decline. As of Friday, Zheng cotton 1701 contract closed at 15670 yuan / ton, down 380 yuan / ton compared with the previous week's 16050 yuan / ton, and futures prices fell, which is not conducive to the spot market of lint.

In 2017, the sale and sale of cotton reserves will start in March 6th. The deadline is tentatively scheduled for the end of August. The number of daily sales will be temporarily suspended by 30 thousand tons.

As a result, the sales period left to the market is only 3 months, and the selling pressure of manufacturers is greater. And this announcement, although there is a demand for replenishment of textile enterprises, it will also be cautious when purchasing cotton materials.

To sum up, with the early accumulation of reserve cotton stocks will soon be bottomed out, the recent textile enterprises to replenishment soon, in the short term or support the domestic lint stable, strong and volatile operation.