Cotton Prices Soared In October For More Than Ten Days, Exceeding The Half Year Increase

According to the statistics of business agency, as of October 19, the average price of domestic lint spot market was 14948 yuan / ton, up 2020 yuan / ton, or 14.62%, compared with October 1, and 17.03% higher than last year. From April to September 2020, the domestic lint price has maintained an upward trend as a whole, with a cumulative increase of 1811 yuan / ton, or 16.31%. In October, the factors of speculation were interwoven, and the enthusiasm of pursuing the rise of cotton price did not decrease. In a short period of more than ten days, it has exceeded the increase of nearly half a year.

From the current cotton table, we can see that after the double festival, Zheng cotton soared. The main force of Zheng cotton once exceeded 15000 yuan / ton. In a short period of more than ten days, it rose nearly 2000 yuan / ton, or more than 16%. As of October 19, ice cotton reached a new high, and the contract price in December was 71.16 cents per pound, but the increase in the same period was less than that of Zheng Mian. Since the first and middle of October, some ports such as Brazil cotton, American cotton and Indian cotton have shown a situation of "flourishing both in and out of warehouse". Traders generally adopt the strategy of "high quotation and low transaction". Cotton may be favored by domestic and foreign prices.

Take a look at the recent market focus on the main positive news:

　　 Hurricane brings cotton price to Tianmei and postpones new cotton harvest

Hurricane delta landed in the United States Delta, and the rainfall brought by the hurricane posed a great threat to the quality and yield of American cotton. Although the harvest was tight before the hurricane, most of the new cotton was not harvested. And the continuous rainfall in cotton producing areas generally delayed the harvest of new cotton by more than a week. According to the global production and demand forecast released by the US Department of agriculture in October, the US cotton production in 2020 / 21 will be reduced by 1% month on month to 17.9 million bales.

　　 Indian crops hit by monsoon rains

This year, Indian monsoon rains come early and leave late, and rainfall exceeds normal levels, causing floods and crop disasters. So far, there is no sign of a complete end to the monsoon rains, and the market is concerned about the extent of damage to Indian cotton. According to the latest forecast, the global cotton inventory at the end of the year 2020 / 21 will be reduced by 2.7 million bales to 111.1 million bales, and the inventory consumption ratio will be 89%.

　　 Foreign orders transfer to China textile orders pick up

Since September, many large-scale export-oriented textile enterprises in India have been unable to guarantee normal delivery due to the epidemic situation, while European and American retailers have transferred a number of orders originally produced in India to China in order to ensure the supply of goods during Thanksgiving and Christmas seasons. In contrast, at the end of September, the United States postponed sanctions on Xinjiang cotton, which may have been a last resort. Industry insiders believe that in the domestic October double festival, double 11, "cold winter" and other factors, consumption will continue to rise, textile and clothing industry is expected to usher in the peak season.

Business agency analysts believe that the market continues to do business in the weather, speculation enthusiasm is not reduced. The impact of the hurricane on the quantity and quality of cotton in the United States, India is also affected by monsoon rains and rains. In addition, some news said that Australian cotton exports to China or hindered, short-term has played a role in boosting. Under the background of global epidemic situation, domestic economic operation and production recovered rapidly, and good environment made foreign orders transferred to China, which enhanced market confidence. The soaring cotton prices, cotton prices in the industrial chain has a conductive, but also reflects the warming orders. But cotton prices rise too fast is irrational, short-term, and needs to be corrected. Textile enterprises hold a rational wait-and-see attitude to the price of Khmer, and the order is to set the contract price according to the market situation of raw materials on the same day. Support cotton prices or return to the end of the demand side, from the Zheng cotton callback to below five thousand five, the end of speculation, the callback trend, is expected to narrow the short-term rise of cotton prices, fall back consolidation.