Domestic Cotton Prices Or Will Maintain A Strong International Cotton Price Or There Will Be No Significant Decline.

Last week, New York futures prices fell further, and cotton prices may have bottomed out.

China's domestic cotton market prices have declined slightly, providing tight support for cotton prices in the coming months.

As cotton is not yet on sale in the new year, market supply will become more intense in the next few months, so domestic cotton prices will remain strong and international cotton prices will not fall significantly.

At the end of last week, ICE futures showed signs of a rebound after a two week crash. The July contract, which was about to be delivered, climbed 77 points to 72.65 cents / pound, while the December contract fell 2.7% to 66.97 cents / pound.

According to statistics, in the past four weeks, the contract in December has fallen by 8.3%.

As global cotton production is expected to increase in 2017/18, speculative funds have begun to liquidate multiple positions.

After the ICE futures price plunged, the market was already oversold.

On the spot market, spot prices fell sharply in the past two weeks, but the decline was significantly lower than that in the futures market, while the price of imported cotton began to rebound on the 26 th after hitting bottom in June 23rd.

This week's forecast is still very limited, and crop output in the United States will increase by 0.6%.

In the domestic market,

The cotton price index fell slightly from 6700 rupees / Mende to 6600 rupees / Mende; India S-6 cotton prices fell by only 200 rupees / candi, falling by 0.5%; China's cotton prices also declined slightly in the past week, and cotton futures prices in Zhengzhou rose by about 1%.

According to statistics, China in May 2017

85 thousand and 400 tons, a decrease of 19 thousand and 400 tons, a decrease of 18.53%, an increase of 7 thousand and 200 tons, an increase of 9.20% over the same period.

In 2016/17, China imported 864 thousand and 800 tons of cotton, an increase of 141 thousand and 400 tons compared with the same period last year, an increase of 19.55%.

In 2017 1-5, China imported 564 thousand and 300 tons of cotton, an increase of 206 thousand and 600 tons compared with the same period, an increase of 57.76%.

According to the regulatory repository of Korla, Akesu, Bachu and other places, the volume of railway pport has increased slightly since the middle of 6, but the volume of road pport has decreased significantly. The overall volume is weaker than in previous years. Traders accounted for more than 70% of the highway output.

The decline in the price of the current auction is mainly due to the continued decline in cotton prices, and the difference between domestic and foreign cotton prices is gradually widening. The auction price reduction is also expected to cause the average price of cotton in the cotton reserves to fall, but Xinjiang cotton has a smaller listing price because of its less listed volume.

The price of cotton will increase greatly and cotton will enter the domestic market indirectly through imported cotton yarn. Long term maintenance will have a greater impact on domestic cotton consumption and prices.

The price difference between the two countries should be narrowed gradually.

Today, the total output of cotton reserves is 30 thousand and 200 tons, of which 10 thousand and 100 tons are listed on Xinjiang cotton. Due to the sharp reduction in the reserve price of cotton reserve auction this week, the turnover rate of cotton reserves is expected to rise. This morning, the turnover rate of cotton reserves reached 80%.

This week, the listing of Xinjiang cotton is still small. Judging from the current situation of Xinjiang cotton listing, the market is still worried about whether Xinjiang cotton can keep enough supply in reserve cotton.

Zheng cotton's fundamentals are still weak, and can be built in the far month.

In addition, the price of foreign exchange has fallen sharply in the near future, and the contract is relatively strong in recent months. It is expected that Zheng cotton will follow its pace to maintain its near strong and weak trend.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.