Textile Enterprises Look Forward To "Normalization" Of Cotton Reserves.

Since mid February, the price of Zheng cotton has continued to fall, and is currently hovering near the 10000 yuan / tonne pass, with the lowest price in the 1609 main market to 9975 yuan / ton, closing at 9990 yuan / ton, the lowest since the listing.

Zheng cotton futures price fell below 10000 yuan, so that the quiet cotton market since 2016 has seen a wave.

The surface of the cotton market is calm, but it is actually undercurrent.

Since last November, rumors about the cotton market in the cotton market have started to boom.

The sharp fall in international cotton prices has led to the downward adjustment of domestic cotton prices, coupled with rumours of various dumping and production cuts in the market and strong market panic. Cotton textile enterprises are pondering whether the current cotton prices have bottomed out.

After the Spring Festival, the news of the coming out of the cotton reserves is coming out in the market.

Although cotton prices have fallen by 10% in the past month, rumors still remain at the level of hearsay, and there is no substantive news.

The main reason for the fall in cotton futures prices is the rumours of cotton spinning.

Then, the price of Zheng cotton will be $10000, but only for the market.

The reaction of the passing of rumors has opened up the gap in cotton prices? Reporters interviewed many people in the industry on the current cotton market situation and their views on the rotation of cotton reserves.

"The market is worried about the increase in the national cotton reserves.

This year, we should vigorously promote the structural reform of the supply side of agricultural products, and speed up the inventory of oversized agricultural products. The cotton market parties have strong expectations for the national cotton reserves.

Zhang Wenmin, general manager of Wanda futures cotton industry division, told reporters that up to now, the state cotton stocks up to 11 million tons, enough to meet domestic cotton market demand for a year and a half.

Since November last year, rumors of cotton throwing and storage have been ongoing.

Judging from the current news from all sides, the market has basically reached a consensus on the prediction of the delivery time of cotton reserves, that is, the time may be more suitable in April, which will not affect the processing and sale of new cotton, nor will it cause pressure on the lint clearing.

According to people concerned, the export price of national cotton reserves may be calculated on the basis of the weighted average of China cotton price index and China's cotton import price index this year.

Wei Gangmin, chairman of Henan TongZhou Cotton Industry Co., Ltd. believes that the new round of cotton production will be combined with the circulation of foreign countries, that is to say, before cotton is priced and thrown away, it may be a circular storage.

Circular dumping is the weighted average of the foreign A index and the domestic spot index, whether it is foreign cotton.

Falling or domestic cotton prices will lead to a fall in the price index.

What will be the impact of the circular dumping policy on China's cotton industry? Wei Gangmin believes that when the cotton prices fall and foreign farmers are unwilling to grow cotton, they will change the world.

The relationship between supply and demand.

For example, the cost of raw materials for cotton production in Vietnam will be higher than that in China next year, so the competitiveness of China's textile enterprises will naturally come up, and the demand for cotton will increase greatly.

In addition, the United States Department of Agriculture recently released the next year's global cotton market forecast report also shows that the 2016/2017 global consumption growth is weak, low chemical fiber prices and China's national cotton store plan will bring continuous pressure on the international cotton prices.

The USDA report thinks that because China's cotton production and demand gap has increased, and the price of rumoured rounds will be reduced, the number of Chinese reserve cotton throwing and storing in 2016/2017 may increase.