Cotton reserves come out to cool down, and the butterfly effect quickly affects the market

Textile enterprises: need to slow down a bit

Some fabric factories in Hebei, Shandong and Jiangsu are no longer as urgent as they were in the past few days, and are generally much calmer. On the 15th, a Shandong textile company mainly produced yarn counts of 60S and below, and 70% of the raw materials could use reserve cotton. So far, the factory has bid for more than 500 tons of cotton, temporarily relieving the urgent need for cotton. But business leaders believe they suffered a loss.

The person in charge said that at the beginning of the round, the average transaction price reached 15,476 yuan/ton. As of the 14th, the average price dropped to 14,848 yuan/ton, a drop of 682 yuan/ton. “The earlier we auction and the more urgent we are, the more we may suffer.” The person in charge said that they want to slow down the pace of auction and storage. They are mainly worried that the more cotton is auctioned, the lower the price will be.

It is understood that many fabric factories have recently begun to back down or postpone their auctions. This also corresponds to the market rule of “buy up, not buy down”.

Traders: We need to selectively auction and reserve

Traders accounted for half of the auction and auction group this year. In the past two days, traders’ auction and storage mentality is quietly changing.

A Jiangsu trader has won more than 1,000 tons of cotton since bidding on the 6th, including both Xinjiang cotton and local cotton. “According to our plan, we will auction and reserve at least 5,000 tons this year.” The trader said that in line with this goal, they felt that they were a bit too hard in the early bidding.

The cotton dealer plans to specialize in selling high-quality cotton in the near future so as to remain invincible in the future cotton trade. The cotton dealer believes that the market will still demand high-quality cotton in 2017. In September and October, high-quality cotton may still be in short supply. There are not many other high-quality reserve cotton resources, so the pace of specializing in high-quality reserve cotton has also slowed down to a certain extent, killing two birds with one stone. .

When talking about their views on the aftermarket, many traders think that they can’t see clearly or understand it. I plan to continue watching it for a while before deciding whether to stay or not.

Ginning factory: destocking and cashing out is the last word

For ginners, the price of reserve cotton is the mainstream price in the market. The quality of reserve cotton determines the spot trend and sales speed. Recently, the average transaction price has been steadily declining, which has had an impact on spot shipments.

On the 15th, a person in charge of a Hebei 400 ginning factory said that due to the fall in average prices, the spot price was reduced by 150-200 yuan/ton. On that day, the local ex-factory price of grade 3128 real estate cotton was 15,700 yuan/ton (delivery, gross weight), which was about 200 yuan/ton lower than last week. Since most ginning mills have changed from reluctance to sell to urgent sales, during the actual transaction process, manufacturers have expanded the discount to 100-150 yuan/ton.

Destocking is the last word. Many officials from ginneries said that it is estimated that cotton may fall more easily than rise in the next April to May. If you act early, you will gain early, but if you act late, you will bear greater risks.

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