According to feedback from cotton traders and textile enterprises, affected by the shock callback of Zheng Cotton CF2009 contract today, which fell below 12,000 yuan/ton, cotton spot orders have rebounded significantly, and basis quotations and “fixed price” transactions have been fresh. There is improvement. The overall cotton market is supported by high temperatures and droughts in most cotton areas of Xinjiang and intensified floods in cotton areas in the Yangtze River Basin. Some cotton companies and traders are still reluctant to sell and have a price-raising sentiment. On July 14, the quoted price of “Double 29” machine-picked cotton in Xinjiang’s warehouse was 12,500-12,700 yuan/ton (level 21), and the quoted price of “Double 28” machine-picked cotton was 12,000-12,100 yuan/ton (level 31). In the first two days, the price was increased by 30-50 yuan/ton.
Some companies in Jiangsu, Zhejiang, Guangdong and other places reported that the cost and selling price of cotton yarn with a count of 50S and above are basically the same or even upside down. The production and order-taking of high-count yarn have been suspended. Cotton procurement is weak, coupled with the reserve cotton round. Therefore, some cotton trading companies said that since July, the number of cotton spinning mills and middlemen taking the initiative to inquire and purchase at prices has continued to decrease compared with May and June. The current market price of CF2007 is 11,600 yuan/ton, which is lower than the average daily transaction price of reserve cotton rounds.
There are currently two reasons why cotton companies and traders do not accept CF2007 contract warehouse receipts. First, textile companies are worried that the delivery pairs will be warehouse receipts with high color grades and high premiums, which are greatly different from actual demand. Second, once you receive the warehouse receipt from the delivery warehouse in Xinjiang, you still need to consider a series of issues such as shipping, warehousing, safety, and insurance, which involves a lot of energy.
Textile enterprises in Henan, Hubei and other places believe that although traders and cotton enterprises in Xinjiang have many basis quotations and price point resources, the impurities in machine-picked cotton in Xinjiang generally reach 3.5-5% in the middle and late stages. Even if The quoted price of lint is 100-200 yuan/ton lower than the market price. The spinning mills open bags, remove impurities, and remove foreign fibers, which not only leads to higher costs, but also lowers the spinning rate. If the color grade (cone yarn, white blank, unified dyeing, color grade has little impact), under the same length, breaking strength, horse value and other index conditions, the Xinjiang cotton reserve for spinning 40S and below count cotton yarn is more competitive , and the costs of picking up goods from storage warehouses in the mainland and short-term restocking are low, and it is convenient for pledge financing, so the risks of purchasing and operating cotton reserves are relatively controllable. </p
