The Key To Unlocking The Industry Stalemate Is The Reduction Of Seed Cotton Prices.

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Processing enterprises recognized, and cotton processing enterprises due to

The price is high and the profit is thin, so the higher price of lint is difficult to deal with the cotton mill.

The two sides are still in a deadlock period, and it is expected that the stalemate will not be broken within a week.

The downward adjustment and the rising price of cottonseed will be the key to unlocking this impasse.

The average reduction of 3-5 points, the cotton farmers reluctant to sell psychological loosening, there is still a slight reduction in the market space, and cottonseed prices are still strong and small rise, in the two factors, we believe that in the next period of time,

Will fall slightly, at the same time, textile enterprises begin to restock with the consumption of inventory, but there will be no room for loosening of the price of lint price. According to our research, the current situation of cloth factories is not very good, directly suppressing the price of yarn, and the profit margins of mills are very limited. Moreover, textile enterprises generally ignore the post market, so they will not give too much concession to the lint price.

Down and buy again.

Although the current Xinjiang cotton is relatively abundant, the state reserve cotton is also a warehouse slowly, but because of the high cost of these cotton, the future will not have a big negative impact on the current level three cotton prices.