The Market Is Concerned About Whether The Cotton Price Increase Of New Cotton Production Will Continue.

According to the price monitoring of the business community, the average price of lint 3128B lint in the domestic spot market was 13058 yuan / ton as of November 6, 2019, rising 3.46% from last month's price, down 16.31% from last year. Since October, domestic cotton spot has continued to rise, new cotton production reduction news fermented, enterprises rush to buy, resulting in increased cost. Zheng cotton rose under pressure, zhengmian main force in recent thirteen thousand shocks.

The picking speed of new cotton is faster and production cost is increased. As of November 5th, the Xinjiang cotton picking rate was 87.08%, an increase of 5.57 percentage points compared to the same period, and the sales progress was 83.74%, an acceleration of 5.71% over the same period. 15 days later, cotton picking will be over in Xinjiang. Due to bad weather in Xinjiang's cotton producing area in 5-6, cotton seed production has been cut down, and enterprises have increased the purchase price to rush to harvest seed cotton. The price of hand picked seed cotton has risen to 6.10-6.20 yuan / kg in the southern Xinjiang, and the machine picked cotton has also risen to 5.5-5.6 yuan / kg.

US cotton export data were not satisfactory, and cotton prices fell during the ICE period. Recently, most of the cotton producing areas in the United States are not cloudy or rainy, and new cotton harvest is somewhat blocked. Although some traders believe that US cotton production is overestimated, the general trend of high yield will not change. At present, Sino US negotiations create a good atmosphere for the market, and the market is eager to see the agreement between the two sides in black and white. This is also the reason why cotton prices can not be reassured. The latest US cotton export weekly data show poor performance, investors expressed concern about the cotton consumption market, ICE cotton prices plummeted. As of November 5th, the ICE cotton contract for December was 63.81 cents a pound, down 189 points from October 30th.

According to the business data, as of November 6th, the average price of the single yarn of 21S high quality knitted top quality goods in Shandong area was 20780 yuan / ton, up 0.29%, up 12.69% from the same period last year. The average price of the single yarn of 32S high quality knitted fabric is 21980 yuan / ton, up 0.27%, down 12.08% compared to the same period last year. Cotton spot prices continue to rise, the purchasing intention of cotton mill is not strong, wait-and-see is thicker, price rises seem to come out.

The cotton price continued to rise, due to the news of Xinjiang cotton production reduction in Xinjiang, and the processing plant was more optimistic about the cotton market. However, the downstream mills do not seem to be in sync with them, and the yarn ex factory price rises later and slowly. On the one hand, imported cotton is not singing all the way, but in recent years there has been a big decline. Domestic cotton prices may be dragged down, manufacturers choose to wait and see; on the other hand, the price of zhengmian is lower than spot, and warehouse cotton can be used for reference. Of course, manufacturers are most concerned about whether orders are warmer. Data show that in 2019 1-9 months, China's total imports of 1 million 476 thousand and 800 tons of cotton yarn, down 8% compared to the same period; total exports of 292 thousand and 700 tons, down 7.25% over the same period last year. The total import of cotton cloth was 193 million meters, down 22.30% from the same period last year, and the total export volume was 5 billion 273 million meters, down 8.02% compared with the same period last year.

Due to a reduction in production and rush to buy seed cotton, domestic spot cotton prices continue to rise, although domestic cotton is expected to cut production, but cotton consumption is still warmer still need to ask questions. The imported cotton and Zheng cotton are running in a concussion, and the market is concerned about the signing of the Sino US agreement. Business analysts believe that the market sentiment is strong. The domestic stock market is rising a bit too fast. The tension of new cotton supply is only in the ferment of dealers. The cotton mill performance is calm, and the spot price is approaching the main force of Zheng cotton. Cotton prices are expected to slow down and stabilize.