Cotton Enterprises Purchase Cotton Willingness To Drop Wait And See Throwing Store Situation

< p > because of weak market and poor sales, cotton sales in the mainland are still dominated by State purchasing and storage.

In addition, all kinds of rumors of throwing and storage affected the market performance of cotton last week, < a target= "_blank" href= "//www.sjfzxm.com/" > textile > /a > last week, and textile enterprises with demand for replenishment needed to buy small quantities of cotton spot in order to avoid risks.

< /p >

< p > < strong > cotton purchasing will decline, wait-and-see sentiment is thicker than < /strong > /p >

< p > the relevant person in charge of Hubei Baiyin cotton industry information center said that there are few inventory of textile enterprises in Hubei and Hunan. These enterprises have been purchasing new cotton in the spot market in recent years, but due to the recent market rumors that they are about to throw away their stores, the purchasing intention of all textile enterprises is obviously slowing down.

< /p >

< p > last week, China's "a href=" //www.sjfzxm.com/news/index_s.asp "cotton > /a" price index averaged 19693 yuan per ton per week, down 27 yuan / ton compared with the previous week.

Last week's cooling and snowfall had a greater impact on Xinjiang cotton. The quality of seed cotton declined and moisture increased, while the number of enterprises stopping and receiving increased. However, the quality of the enterprises still being acquired was strict.

< /p >

< p > as of mid November, the national cotton picking rate was 91.5%, down 0.2% compared with the same period last year, and cotton purchasing accounted for 70.9% of the total output, down 1.3% from the same period last year.

In addition, as of November 22nd, cotton temporary storage and storage totaled 2646200 tons in 2013, and 1245200 tons in Xinjiang. The total volume of pactions in the mainland was 568050 tons, and the total turnover of backbone enterprises totaled 832950 tons.

Total turnover decreased by 13% compared with the same period last year, while Xinjiang decreased by 37% compared with the same period last year, and the mainland decreased by 50% over the same period last year.

< /p >

< p > in addition, the reporter learned from the China Cotton Association that the picking of cotton seeds in the mainland has basically ended, but the cotton purchase and processing market is still dull.

Wang Shufei, an agricultural product analyst at Huizhou merchants, said that the decline in cotton storage in the mainland this year was mostly due to the fact that the quality of new cotton did not meet the requirements of this year's new national standard.

For example, the length of cotton along the Yangtze River is short, mainly 25 and 26 millimeters, and cotton with short length can not be stored.

And the pressure of selling cotton that can not be stored is bigger. Even if the price is less than the 20400 yuan / ton price of the storage and storage, it will still be difficult to sell abroad.

< /p >

< p > the cotton development in Xinjiang has been postponed this year, resulting in the slow progress of cotton picking in the whole country.

Wang Wei, a cotton analyst at Zhongyuan futures, said that at present, the new cotton picking in main production areas in China has been over, and the quality of cotton seeds has been reduced due to the decline of late seed cotton quality, and the profit margin of cotton enterprises has been declining.

"Throwing away the store is coming soon. Many cotton related enterprises are mainly buying and selling."

< /p >

< p > reporters learned from a number of cotton enterprises that as the cotton enterprises in the early stage of the textile industry gradually began to digest the national cotton stores and the majority of new cotton was chosen to hand over to the State Reserve, although the cotton processing and purchasing season was currently in place, the cotton resources available in the textile mill were not very abundant.

< /p >

< p > < strong > the role of purchasing and storage policy will be weakened, and cotton prices will continue to go down < /strong > /p >

< p > it is understood that in 2013, the base price of new cotton purchase and storage in China was 20400 yuan / ton, which was higher than cotton futures and spot prices to varying degrees.

Judging from the market performance after the implementation of the policy of purchasing and storage this year, Zheng cotton did not rise or fall, which is enough to explain that the role of purchasing and storage policy for cotton prices is weakening.

Once there is a low price reserve or other negative factors, cotton prices will naturally come down.

< /p >

< p > Wang Shufei believes that the "excess supply and demand + market reform" in cotton city will determine the future trend of cotton prices, and the space and role of market adjustment of cotton prices will be further strengthened after the gradual release of cotton < a href= "//www.sjfzxm.com/news/index_s.asp" > market < /a >, then the supply and demand surplus pattern of cotton market will lead to a new decline in cotton prices. It is estimated that cotton prices will run normally between 17000 and 18000 yuan per ton next year.

Therefore, for investors, they can sell short positions on the forward contracts and sell short positions, while those holding cotton spot positions can sell them at reasonable prices.

In addition, under the role of marketization, the huge price difference between inside and outside cotton will come back sooner or later. Traders can also choose to buy the cross market arbitrage investment of cotton producing countries.

< /p >