China US Trade And Economic War To Ease Cotton Prices And Enhance Mentality

After reaching agreement on the first stage economic and trade agreement between China and the United States, cotton price has not risen sharply, but because of the high price of seed cotton this year and the high processing cost of the ginning enterprises, the market needs to be eager. With the improvement of the macro market environment, the price mentality of the ginning factory has increased significantly. Compared with the middle of the year, the enthusiasm of enterprises in processing and sales has improved. According to statistics, as at 24 hours in December 16th, Xinjiang accumulatively processed 4 million 234 thousand and 300 tons, an increase of 1.95% compared with 4 million 153 thousand and 200 tons in the same period last year. At present, the average daily processing volume is less than that of the same period last year, and the cumulative processing volume is higher than that of the same period last year. The number of public inspection of cotton within the territory reached 3 million 774 thousand and 400 tons.

Recently, the lint processing of enterprises in North and South Xinjiang is orderly. Some enterprises in northern Changji, Shihezi and Kuitun have finished processing in succession, and the overall processing speed of corps is faster than that of local enterprises. As part of the company's early supply of goods has been hedging or selling at a point price to traders, and the market for Sino US trade is expected to improve, the mainstream cotton mill 3128 level cotton picking mainstream warehouse price quoted in the range of 13200-13400 yuan / ton, the price center of gravity significantly increased 50-150 yuan / ton compared with last week.

There is a slight difference between the southern Xinjiang ginning factory and Northern Xinjiang. First, the overall processing speed is slower than that in the northern Xinjiang. There are still a large number of seed cotton yards in the northern part of the country. Secondly, although the quantity of hand picked cotton has not been much, the market trend of individual picking cotton processing enterprises is improving, and the quantity of seed cotton has been increased temporarily. At the same time, the latest price of the 3128 grade hand picked cotton is 13400-13600 yuan / ton, up nearly 100-200 yuan / ton compared with last week.

Due to the impact of Sino US trade frictions last year, most enterprises were hanging upside down with cost, and the ginning plant suffered a great loss. This year, we dare not make big profits. Compared with last year, this year, the inventory pressure of processing enterprises is not large, and the occupation of funds is also limited. Therefore, the market is showing signs of improvement.

In addition to the above reasons, the price mentality of the ginning factory can be enhanced, and it also stems from the recent increase in enquiries. With the steady growth of domestic cotton prices, some cotton trading companies have been more active recently. Some cotton merchants have actively selected some high cost performance or high index resources in the territory to catch up with the last wave before the Spring Festival.