The USDA Report Is Short Of Caution In The Procurement Of Textile Enterprises.

USDA expects us cotton growing area to grow by 10% to 11 million 500 thousand acres in 2014. The increase in yield per unit may make output more than 3 million 500 thousand tons. In addition, the speculative bull ends to the end of May shift, and the expectation is not in sight. ICE's popularity has been suppressed, and the main contract has fallen 88 cents again, ending up at 87.65 cents for two consecutive days. American cotton The speculation in the 2 cotton futures contract, which is contracted, shipping tight and ICE deliverable, has cooled.

ICE short line will still oscillate in the 85-90 cent compartment, waiting. Chinese cotton The import quota policy, the "direct subsidy" rules and the March China National Cotton auction policy will be partially adjusted (attracting cotton enterprises to pick up cotton from the national reserve disk, as soon as possible to inventory, capital decompression) and other related factors.

Whether or not the import quota of processing trade will be increased after March, or the dumping quota will be applied to the cotton import quotas, all will be favorable for the ICE and the foreign cotton market. ICE will stand 88 cents and the possibility of approaching 90 cents or even 94 cents will be more likely. In the past two days, it is concerned whether the low point of May will fall below the 85 cent pressure level.

From the understanding of the situation, in February Cotton enterprises The middleman buys cotton as the main item, and buys the goods at the end of the day. The goods are mainly sold at the spot, and the price of the bonded cotton is quoted and purchased cautiously, especially in the 3-4 month, the SM class quotation is higher than 100 cents / pound in the US cotton and Central Asia cotton, and the order base of the Chinese buyers is in a stagnant condition for the 5-6 month shipping date. The price of India cotton S-6 for port clearance is 17800-18300 yuan / ton (horse value is A, length 29mm and above), which is generally down 100-150 yuan / ton compared with last week.

According to several importers in Qingdao and Zhangjiagang, the quotations of Xinjiang long staple cotton and imported PIMA cotton are "high and steep", while the resources of the national cotton mill are mainly medium and low grade. There are not many Australian cotton in the port and on the way 2013 (the quoted price of SM class is basically over 21000 yuan / ton). Therefore, some large and medium sized cotton mills with high count yarns are buying 1% medium duty cotton imports, including SJVACALALLOOSE, SJVACALASGRECAP and ARIZONARECAP.

According to the survey, recently, domestic textile mills are still in urgent need of high grade demand, especially the machine picked (no three silk) cotton. From February to May, some new cotton that can be supplied in the global market is only cotton in the United States, South America and Europe. Because of the high price and quota uncertainty, the Chinese buyers are afraid to place an order.