Review Of Domestic And Foreign Cotton Market During National Day

Review of domestic cotton market during the National Day

Seed cotton purchase

During the national day, cotton picking in Xinjiang and the mainland accelerated and the purchase gradually increased. As of October 7th, the purchase price of hand picked cotton in southern Xinjiang was maintained at around 5.4-5.8 yuan / kg, down by 0.3-0.4 yuan / kg compared with the pre holiday period, and the listing rate of machine picked cotton in North Xinjiang increased gradually. The price of the machine picked up at 4.6-5.0 yuan / kg, up 0.2 yuan / kg before the holiday, and the price of cotton seed in the mainland remained at 5.4-6.0 yuan / kg interval.

With the launch of the new cotton concentration listing, cottonseed prices all over the country have dropped to varying degrees. In October 7th, the price of cottonseed was about 1.75 yuan per kilogram in Kashi area, which was 0.3 yuan per kilogram lower than that before the holiday. The price of cotton seed in North Xinjiang was about 1.65 yuan / kg, which dropped by 0.4 yuan / kg compared with that before the festival. The price of cotton seed in the mainland was 2.0-2.2 yuan / kg, which dropped by 0.2-0.4 yuan / kg before the holiday.

Public inspection of lint

According to China's cotton notarization inspection website data, as at 24 o'clock in October 7, 2019, a total of 146 cotton processing enterprises in this year processed cotton according to the requirements of the cotton quality inspection system reform plan, and notarized the inspection volume of 48 thousand tons.

According to statistics, as of October 8th, a total of 132 cotton processing enterprises were sent to Xinjiang for inspection. The inspection volume was 44 thousand tons, and 14 cotton processing enterprises in the mainland were inspected for 4 thousand tons.

Lint price

As pre holiday futures continued to fall, the number of spot price sales increased, the fixed price spot sales were blocked, and the market turnover center declined significantly. During the festival, the price of Chen cotton in the Xinjiang warehouse was set at 12400-12700 yuan / ton, and the price of real cotton was mostly 12000-12500 yuan / ton. In the Kashi area of Southern Xinjiang, the new cotton picked 12400-13000 yuan / ton (gross weight and strong warehouse itself), which dropped 600-800 yuan / ton compared with the pre holiday period, and the price of the machine picked cotton in North Xinjiang is currently 12500-12800 yuan / ton, basically no deal.

Cotton consumption

During the national day, domestic cotton futures closed, and spot trading basically stagnated. Sporadic trading basically referred to futures closing prices. After the fall of Zheng cotton, cloth factories also did not dare to prepare too many conventional varieties of raw materials inventory, after the procurement more cautious, cotton yarn sales again cold, during the holiday season significantly reduced, cotton yarn inventory increased, larger inventory of small and medium-sized enterprises have a small number of National Day holiday. The cotton yarn inventory of large and medium enterprises has generally increased, and it has been maintained for 1-2 months. Accounts receivable is mostly over 1 months, and funds are relatively tight.

Review of international cotton market during National Day

ICAC monthly report

ICAC reported in October that global cotton consumption grew slowly in 2019/20, and the demand outlook continued to slump, and global cotton consumption was reduced from 26 million 700 thousand tons to 26 million 500 thousand tons. Affected by global output growth and slowing consumption growth, the international cotton price is expected to remain low in 2019/20, and the A index is expected to be 76.7 cents per pound.

ICE futures

On September 30th -10, 7, the new round of Sino US economic and trade consultations that the market expected to start has brought positive results. The Texas continuous weeks of rain triggered the market's worries about the output and quality of new cotton. Some speculative short sellers took the opportunity to make up for it. ICE futures maintained a slow upward trend, and the main contract for December continued to rise slightly for 5 consecutive trading days. As of October 7th, the contract closed at 61.83 cents in December, up 1 cents over September 30th.

New cotton flower

As of October 7th, the US cotton harvest finished 25%, an increase of 1 percentage points compared with the same period last year, an increase of 5 percentage points over the past five years. The excellent and good rate of new cotton in the United States was 39%, down 1 percentage points from a week ago, down 3 percentage points from the same period last year.

US cotton exports

Recent US cotton exports and shipments were mediocre. In the week ending September 26th, the net signing volume of 2019/20 in the US increased by 15% over the previous week, 49% over the previous four weeks, 1701 tons in the 2020/21 year, and 35 thousand and 100 tons in the US 2019/20 2019/20, a decrease of 12% over the previous week, 16% lower than that of the previous four weeks.

India

India industry agency said India's seasonal wind and rain continued to cause floods in some areas. New cotton harvest may be delayed for at least three weeks. Cotton import demand is expected to remain active in the near future. The production of peanuts and cotton in Gujarat is expected to decrease significantly, but the situation needs to be observed.

Pakistan

The output of new cotton may be much lower than expected. According to the latest statistics of Pakistan ginning factory Association, as of October 1st, the new cotton market in Pakistan was only 2 million 933 thousand packages, far lower than the 4 million 20 thousand package in the same period last year, a decrease of 27%. It has been reported that cotton prices have risen sharply due to the reduction in cotton production. Recently, the Pakistan textile mill has been very active in purchasing cotton, cotton and cotton in Brazil, and reflects the possible problems of new cotton output from the side.