Cotton Continued To Rise, Textile Enterprises Do Not Buy

With the price of zhengmian cf2109 contract breaking through 17200, 17500, 17800, etc., spot basis quotation, spot price and buy it now price have been greatly increased. However, except for the relatively active transaction of buy it now cotton due to its slow and low rise, most cotton mills are in a wait-and-see state, and do not buy the sharp rise of cotton futures and spot, and the sentiment of chasing up is not strong.

A cotton enterprise in Heze, Shandong Province, said that although the spot transaction and delivery of commodity cotton were not ideal since the middle and late July, the attention and enthusiasm of cotton mills and middlemen to Zheng cotton warehouse receipts were significantly improved compared with that in June, especially the warehouse receipts in the mainland were very popular. On the one hand, the price difference of cotton in Xinjiang and abroad narrowed to 150-250 yuan / ton in nearly half a month; On the other hand, the buyer is worried that the color grade and quality index of cotton for delivery in Xinjiang can not meet the requirements (the discount is high). According to statistics, as of July 28, there were 13808 warehouse receipts of Zheng cotton, 3006 less than that of June 28, and the outflow of warehouse receipts exceeded 120000 tons in just one month.

According to the survey, there are several reasons for the inactive spot purchase of cotton textile mills: 1. Although zhengmian and zhengsha started the forced empty mode this week, the actual increase space and increase of cotton yarn spot were obviously weaker than that of zhengsha's cy2109 contract, and the net profit of cotton spinning mills continued to decline compared with the previous period; 2、 The reserved cotton is delivered to the cotton mill in an orderly way, and the raw material purchase demand is guaranteed. According to the 600000 ton rotation plan, there will be at least 428000 tons of cotton to be rotated before the end of September; 3、 The cotton import quota of 700000 tons sliding standard tax has been issued in batches since July 21. Textile enterprises' inquiry and purchase of overseas cotton and Port Bonded cotton in July / October continue to pick up, which is conducive to cotton mills' cost reduction and improvement of textile and clothing export competitiveness.