At the beginning of this week, cotton and cotton yarn futures continued their decline, and the decline gradually expanded to about 2% at noon, both hitting new stage lows. On February 13, the main contract of Zheng cotton closed at 14,315 yuan/ton, down 305 yuan/ton, a new low in nearly a month; on February 13, the main contract of Zheng cotton closed at 21,330 yuan/ton, down 480 yuan/ton.
Previously, the market had strong expectations for demand recovery after the holidays, but at present, the performance of downstream orders is still lower than expected. There is a certain gap in the actual recovery of consumption. The gradual acceleration of new cotton processing has cooled the recent market optimism. Cotton and cotton yarn futures prices Then came the pressure.
▲Recent cotton futures trends
The strength of the US dollar suppressed overseas cotton prices, and ICE cotton futures prices fell slightly. On Friday, the ICE March cotton futures contract fell 0.23 cents, or 0.27%, to settle at 85.50 cents per pound.
Domestically, the current market focus is still on the performance of downstream demand. The overall terminal orders last week were lower than expected, and the progress of new cotton processing has gradually accelerated. The increase in supply and demand pressure has cooled the market’s previous optimism. However, demand recovery still needs further confirmation, and it is necessary to continue to track the actual downstream order volume and replenishment demand. According to tteb information, after Zheng Cotton fell last Friday, spot transactions in the cotton market were booming, with large price point transactions, and textile companies’ orders were swept away and active transactions were good.
The fixed-price price fell with Zheng Cotton, but there were very few transactions. The pure cotton yarn market has little change, and trading remains stable. After Zheng Cotton fell sharply last Friday, the price of pure cotton yarn has not changed yet, and the market has increased its wait-and-see attitude. From an industrial perspective, the current inventory of textile companies is still low, processing profits remain at a loss, there are still certain orders on hand, the current pressure is not great, and there is a certain willingness to raise prices. The procurement of conventional downstream gray fabrics has slowed slightly, but the overall trading volume remains stable. At present, new orders are still scarce, and some weaving mills said that inquiries are still active, and the overall quotations are basically maintained with little change.
The recent change is that the increase in production on the supply side has become a reality. On the demand side, the market had previously expected that post-holiday order placement would be good, but judging from the current situation. Although the price of cotton yarn in the downstream has increased after the holiday, the overall transaction volume has not increased, and the order situation is not as good as expected. Since textile companies have already restocked cotton raw materials, the current strategy is to mainly buy as they are used, and the cotton price is The support is limited.