Cotton market into focus

Number of visits: Date:2017-04-12

Late January US cotton touch 57.05 cents / lb low, a record five and a half years low. Which caused the interest of the textile industry buying, US cotton exports for three consecutive weeks more than 100,000 tons, driven by a strong rebound in the disk. Compared to US cotton, Zheng cotton is more dull, although the US cotton driven, Zheng cotton price overall slightly upward, but the smaller.

US cotton export data is good, warehouse receipts plummeted

Since January, US cotton exports remained strong, for three consecutive weeks the amount of contracted more than 100,000 tons, to support the US cotton continued to rebound. In addition, February 9 ICE US cotton warehouse receipts suddenly reduced by the previous day's 40945 package almost halved to 22065 package, inventory fell to the lowest since November 14 last year. According to the US National Cotton Council (NCC) released the 2015/2016 US cotton acreage survey results show that 2015/2016 US cotton acreage is expected to 9.428 million acres (5722.8 million mu), down 14.6%. Gary Adams, vice president of NCC, said the US cotton harvest area is expected to be 8.2 million acres (49.77 million mu) if it is estimated at 12.8% of the US cotton yield. According to the average yield of 817 pounds per acre, the US cotton production is expected to be 14 million bales (305 million tonnes) in 2015/2016, of which 13.3 million bales (2.9 million tonnes) of terrestrial cotton, 694,000 bales (150,000 tonnes) Ton).

India throwing the price of the focus gradually down

At the beginning of 2015, India has become the focus of global cotton market. January 27, India CCI officially began to throw storage, the price of 70 cents / lb, higher than market expectations. But the market agreed that if the CCI's selling price continues to be higher than the market price, then the auction or difficult to volume. Sure enough, since January 27, throwing cotton turnover is very small, basically remained at around 1000 packets, January 30 zero deal, February 2 only 300 packs. It can be seen that the selling price of 70 cents / lb has not been recognized by the market. Since then, the focus of India throwing the price of the gradual downward trend, trading volume has increased.

Domestic spot transactions were light, the market expected after the holiday library

At present, the textile enterprises have entered the Spring Festival holiday, the cotton market deserted, subject to financial constraints and adequate supply of cotton and the impact of weak prices, textile enterprises are mostly low inventory, with the use of to buy. Despite the weak spot transactions before the holiday, but cotton prices are unlikely to cut cotton prices. Cotton consumption data from previous years, the demand for cotton after the Spring Festival will be a certain improvement. Therefore, the cotton enterprises on the postganglionic replenishment market expectations in reason. In addition, although the Corps cotton sales slow, 1.76 million tons of cotton sales of less than 400,000 tons, but still not lower prices. Corps of the price behavior for the domestic cotton prices to provide a certain support, but later with the financial pressure, support will gradually weaken.

In summary, the late US cotton prices are expected to remain strong. But India throwing a small turnover, the global cotton prices have brought some pressure. The domestic market, although the textile enterprises have the demand for postganglionic replenishment, as well as the corps very support, but the huge treasury stock pressure is still, Zheng cotton up space should not be too optimistic.

TypeInfo: Industry news

Keywords for the information:

Sichuan chuanmian printing and dyeing co., LTD

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Add:Sichuan Province, Jintang County, Huai Town, textile printing and dyeing industry concentrated development area



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