In the spot market, how is the sales situation of Xinjiang cotton reserves?

Correspondent from China Cotton Network: According to reports from cotton traders and fabric companies in Jiangsu, Henan, Hebei and other places, since April 25, the “Double 28/Double 29” reserve Xinjiang cotton for spot sales in 2011-2013 has been inquired and sold The goods and outbound shipments are much more lively than those in March and April (the color grade is mostly light yellow dyed cotton or yellow dyed cotton grade 1). This is mainly due to the receipt of goods by small and medium-sized cotton textile mills in the mainland, and middlemen are not active in taking inventory. On May 2 and 3, the official quotation price of Henan warehouse’s “Double 28” reserved hand-picked cotton in southern Xinjiang was 15,400-15,600 yuan/ton; the “Double 29” official quotation of reserved hand-picked cotton in southern Xinjiang was 15,800-16,000 yuan/ton, both lower than in 2016. /The price of Xinjiang cotton of the same quality in 2017 is 300-400 yuan/ton (mainland warehouse), so why are the sales of reserved Xinjiang cotton for resale active, and the inquiry and transaction smooth?

First, in 2017, Xinjiang’s cotton resources were unstable due to cotton reserve rotation, and cotton-using companies were increasingly worried. According to statistics, from April 25 to May 3, the proportion of Xinjiang cotton resources was between 30-60% (100% of Xinjiang cotton was traded). With a total daily listing volume of 30,000 tons, the number of Xinjiang cotton listings was not Stable, triggering speculation among traders. Judging from the auctions of reserve cotton in recent days, the price increase and rush for Xinjiang cotton have once again entered a “white heat”, and the scope of price increases has expanded; in order not to push up the transaction price, textile companies choose to take it from traders. goods;

Second, the spot price of Xinjiang cotton reserves is not at a disadvantage. According to the “Announcement on Arrangements for the Rotation of National Reserve Cotton”
》The internal sales floor price calculation formula for reserve cotton rotation. The reserve cotton rotation sales floor price for the 2016/2017 annual reserve cotton rotation (the week of May 2-May 5) is 15,662 yuan/ton (standard grade price). The reserve cotton rotation The center of gravity of the reserve price has moved upward rapidly; traders generally increase the price of reserve cotton by 150-250 yuan/ton, which is slightly lower than the increase in reserve cotton reserve prices; in addition, because traders resell reserve Xinjiang cotton in relatively large quantities, and all of them are in inland warehouses, Not only is the space for selecting goods large, making it easy to see large samples, but compared to the high-quality Xinjiang cotton in 2016/17, the price difference of reserve cotton is 300-400 yuan/ton;

Third, some fabric companies have credit and financing needs. Judging from the survey, in late April, some fabric factories, workwear companies, and foreign trade companies in Henan, Shandong, Hebei, Jiangsu and other places reported that domestic and foreign sales orders were declining, and the inventory of finished products in small and medium-sized yarn mills was slowly rising, and some yarn mills began to take the initiative Adjusting to the direction of polyester-cotton, polyester-viscose and other blended chemical fiber fabric yarns and rayon cotton yarns, cotton yarn prices have also loosened overall by 300-400 yuan/ton; and downstream have reported that payment recovery is slow, credit and account issues are on the rise, so yarn When factories choose to receive cotton reserves from traders, they consider that the account period can be one to two months, which can reduce the pressure on capital flow in the short term and maintain normal production and order acceptance.

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