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Cotton Prices Return To Stable Spinning Enterprises Mentality Contradictory Price Short-Term Direction Is Still Difficult To Judge.

2011/5/28 11:05:00 78

After a big wave of "roller coaster" market, cotton farmers, cotton traders, yarn enterprises and textile enterprises have ushered in a short stable cotton price. The domestic cotton price has been stable at 25500 yuan / ton in the past month.

Under the complicated pattern of supply and demand, the market will have a directional choice in the third quarter.

Textile enterprises

The state of mind has been changed from pre - cautious watching to waiting for contradictions.

It is understood that at present, most of the lint stocks of large textile enterprises are in the 1 and a half months to 2 and a half months, and only a few of them are more than 3 months. Quite a large number of raw materials inventory of large textile enterprises is at a level of 20 days.

Whether the sale of the downstream cotton yarn Market in the three quarter can be improved is still unknown, and a series of measures such as electricity limitation and other unfavourable start up, and uncertain factors such as the late trend of the upstream cotton price, all of which have led the textile enterprises to rush to purchase.

Under the guidance of wait-and-see sentiment, the lint market is lint.

Cotton yarn price

A slight stabilization has been achieved. The volume of the business has been diluted, and the price of the grey cloth has not been in place. The market continues to wait for the order to be decentralized.

Large spinning enterprises have plenty of raw cotton stock and still have no desire to buy.

Small and medium-sized textile enterprises appeared to purchase a small amount of pressure to buy prices. Individual cotton merchants began to eat large quantities of imported cotton and Xinjiang cotton because of abundant funds.

We can see that some cotton traders are still optimistic about the market gap, which also promotes the recent lint price increase.

After all, global cotton stocks are still at a historically low level, and the impact of global drought on cotton production has also worried the market for late supply.

Today, severe drought has spread to most parts of the Central Plains of the United States and has become more and more popular.

Texas is the second largest grain producing area in the United States, and is also a relatively developed area of cotton cultivation in the United States.

May is the most rainfall season in Dezhou every year, but in some areas, there has been no obvious precipitation for 9 consecutive months, resulting in an increasing drought area.

Experts estimate that if the drought continued in June this year, the loss of farmers and herdsmen in Texas would rise from $1 billion 500 million now to $4 billion, a record.

Cotton production is expected to decrease by nearly 2/3 in the worst cotton producing area in Texas.

Cotton production in Dezhou accounts for more than half of the total in the United States. Once the production is reduced, it will have a serious impact on the whole industry of the United States.

Affected by this, May 25th, ICE's new work in December.

Cotton futures

It rose 6 cents, or 5.01%, to 1.2576 dollars / pound.

This is the largest daily gain since March 31st.

Domestic futures market, cotton futures main contract price in September also stopped, and for three weeks in a stable 25500 yuan / ton near.

However, analysts generally believe that most of the importers continue to wait and see, and the short-term direction of prices is still hard to judge because of the uncertain future direction, the large difference between the quotations in the near and far months and the textile production situation.

Nevertheless, investment circles are still optimistic about the late trend of cotton prices.

At present, Morgan Stanley has raised its estimate of cotton price for 2010/2011 to $1.43 from 0.78 US dollars per pound.

The bank's estimate of cotton price in 2011/2012 has also been revised to $1 from the previous US $0.88 per pound.