Focus On The Market: Cotton Yarn Performance Strong, Mainly By The Macro And Industrial Boost

 

 

Secondly, at present, it is the peak period of machine picking cotton harvest, and the purchase price of seed cotton has risen again after a few days' decline and correction. The mainstream purchase price of machine picked cotton in Northern Xinjiang has risen to 10.8-11 yuan / kg. New cotton acquisition progress is slow, slow listing progress, coupled with weather impact and Xinjiang epidemic situation, causing concerns about the supply and listing progress.

 

At the same time, a few days ago, Zheng cotton fell more than spot, spot premium limit futures decline. Thirdly, textile downstream textile mills and dyeing factories Limited electricity and gas, dye prices rose, delivery time was delayed, and the market showed a slight shortage of supply.

 

Finally, the sharp rise in energy prices, as well as the cold winter expectations brought by La Nina, led to a sharp rise in the varieties of polyester fiber industry chain, pushing up the cotton demand expectations.

 

In the later stage, cotton price was still dominated by the strong fundamentals at the supply side during the acquisition period. The cost of new cotton was high and the listing was slow. Under the environment of dual control, energy shortage, short fiber substitutes price expectations were strong, and the cost side and supply side led to the rise of Zheng cotton price during the acquisition period.

 

As of yesterday's closing, the basis of 264 yuan / ton, when the market gives enough hedging space and the entry of new warehouse receipts, cotton prices may stop rising and fall. After the end of the acquisition period, the market may turn to demand-oriented, and the inhibitory effect of high cotton prices on the downstream textile demand will gradually be reflected. It is also necessary to pay attention to the downstream acceptance of high cotton prices and the order situation.