On October 13, ICE US cotton futures fell for the fourth consecutive trading day. The fall in external prices has put some pressure on the domestic market. This week (October 11-15), Zheng cotton maintained a volatile operation after a high correction, but it hovered around 21,000 yuan/ton for many trading days, and the long-short game was fierce. Compared with the external market, Zheng cotton’s performance is relatively strong, and the overall decline is much lower than ICE US cotton prices. Most market participants believe that the main reason for the shock is the recent Xinjiang cotton sales game.
Since the daily limit of Zheng cotton on October 8, the market has cooled down significantly due to the new round of reserve cotton release, Chinatex, and the direct supply of imported cotton from Chinatex. Xinjiang Seed cotton prices have been falling for days. Due to the rapid price reduction of seed cotton, the mentality of some growers to support the price and be reluctant to sell has gradually increased, causing some cotton farmers to stop harvesting and wait and see.
It is understood that “egg roll cotton” has increased significantly in northern Xinjiang this year. It is easy to store in the field, and cotton farmers can choose to relax the sales time. Some ginning companies in northern Xinjiang said that in recent years, “egg roll cotton” has increased in Xinjiang, mainly because the cotton of “egg roll cotton” basically does not fall to the ground during picking, which greatly reduces the color pollution and impurity content of cotton. impact, and the price is 0.1-0.2 yuan/kg higher than that of loose flowers; on the other hand, “egg roll cotton” is more convenient to store and ship, and facilitates safe transportation. At the same time, if there is rainfall or snowfall, it will not have much impact on seed cotton. This year, the price of cotton is high. In order to sell it at a high price, some cotton farmers mostly choose to pick “egg roll cotton”.
It is understood that some ginning companies are speeding up the public inspection and listing process of lint cotton due to difficulty in purchasing seed cotton smoothly, in order to withdraw some funds as soon as possible. Some companies in northern Xinjiang have begun to quote prices. Selling new cotton. According to feedback from several cotton companies in Shihezi and Kuitun, due to factors such as processing costs, the price of new cotton has been relatively high recently. The price of Double 28 and Double 29 is between 24,000-26,000 yuan/ton, and basically no one in the downstream textile enterprises is interested. New cotton sales are priced but not available, which undoubtedly puts pressure on production companies. Some ginning companies even said that their acquisition work this year can only be put on hold for one year. Of course, some companies that have invested a large amount of contracting funds have to continue to fight hard to find suitable acquisition opportunities and sales opportunities, hoping to survive the year smoothly. </p
