Good Policy, Zheng Cotton Rose To 15300 Yuan Cotton Spot Prices Rose

Recently, under the influence of national monetary easing and tax reduction policy, domestic commodities started to rise. Cotton prices rose in the short term fundamentals, and the main contract of zhengmian continued to rise to more than 15300 yuan / ton. According to the current situation, the market still has the possibility of going upward.

According to the weekly market report released by the national cotton market monitoring system, when Zhou (14-18 January 2019), market confidence slightly recovered, the national cotton price B index representing the mainland standard grade lint average price was 15448 yuan / ton, up 2 yuan / ton compared with last week, and the settlement price of Zhengzhou cotton futures contract was 15169 yuan / ton, up 80 yuan / ton compared with last week.

With the rise of US stocks and China's invitation to trade consultations in the US, international cotton prices have risen. New York cotton futures contract settlement price of 73.83 cents / pound, up 0.8 cents / pound compared to last week; the international cotton index (M) representing the average price of the Chinese main port on imported cotton is 82.01 cents / pound, up 0.72 cents / pound compared with last week, and the cost of import RMB 14234 yuan / ton, up 122 yuan / ton compared with last week, and the difference between domestic and foreign cotton price is 1215 yuan / ton, and the space for price difference continues to shrink. The rise of cotton prices inside and outside will help Zheng cotton maintain its upward trend.

A downstream cotton spot trader said that spot sales had been improved under the impetus of Zheng cotton, but the quality was mainly based on Xinjiang cotton, and the spanaction price had risen by more than 200 yuan / ton. However, I dare not be optimistic about the trend of the later stage. A textile enterprise in Anhui has said that the spot market resources are abundant. Even if the Sino US trade negotiations succeed, the impact on the price of Zhengyang cotton is not very large.

As of January 20th, the processing capacity of Xinjiang cotton reached 4 million 983 thousand tons, which was only 40 thousand tons from the 5 million 24 thousand and 300 tons in the previous year, indicating that cotton production in 2018 was basically stable. At present, the pressure of warehouse receipts is huge. Most enterprises wait for price rebounding to carry out hedging. After all, the price of new cotton is difficult to be set up when prices are running low for 2018. As of January 18, 2019, the increase in cotton warehouse receipt to 627 thousand tons is still continuing to refresh the historical high value, and the market supply pressure still needs to be released effectively. Under great pressure, Zheng cotton has a lot of pressure to keep going to new heights.