Futures And Spot Cotton Prices Will Come Down Soon.

Due to the lack of cotton, nearly 150 cotton textile enterprises in Hubei, Hunan, Shandong, Hebei, Zhejiang, Fujian, Jiangsu, Guangdong and other places recently reported to the China Cotton Textile Industry Association (China Cotton Trade Association) in the form of telephone and joint letters, and expressed problems in the issue of cotton reserves. China Cotton Association has organized a forum on cotton textile enterprises. At the meeting, relevant departments responsible persons said that for cotton storage, we believe that there will be some new initiatives in a short period of time.

"The reserve cotton system is not a problem in itself, but there is a deviation in its implementation." Yesterday, the China Cotton Trade Association insiders told reporters. Since the launch of the reserve cotton in May 3rd, as of July 22nd, the cumulative turnover of cotton in 2016 has reached 1 million 477 thousand and 100 tons, and the total turnover of imported cotton is 296 thousand and 300 tons, with a turnover rate of 98.16%. The total turnover of domestic cotton is 1 million 180 thousand and 800 tons, with a turnover rate of 98.26%.

As explained by the foregoing people, the implementation of the reserve cotton system is mainly manifested in the following aspects: first, the system plans to put in 50 thousand tons of cotton per day, if not enough, it will continue to increase its input. But at present, less than 30 thousand tons are actually put into operation every day, sometimes even down to 10 thousand tons. Secondly, when the warehouse is being poured down, the efficiency of the warehouse is low due to the restrictions of the site and manpower, which also affects the delivery of reserve cotton.

Finally, some vested interests in the market are unwilling to give up profits, because the stock can be charged for the site fee. Some people are unwilling to let the cotton out of the warehouse in large areas, thereby increasing the cost of the cotton reserves. According to the China Cotton Association, the main contradiction in the market is that the supply of cotton is insufficient, which leads to the lack of money, which causes cotton prices to rise. It is understood that the price of Zhengzhou cotton in July 25th reached 15440 yuan / ton, up nearly 5000 yuan per ton compared with the beginning of April, and the national average price of cotton was 14927 yuan / ton, up 2967 yuan from the beginning of April.

The price of spot and spot cotton rose rapidly, but it was difficult to spanmit to downstream, causing damage to textile entity enterprises. Yesterday, the Jiangsu SKYWORTH textile printing and dyeing Co., Ltd., which participated in the joint presentation, was listed below. SKYWORTH textile The person in charge told reporters that the spot price of cotton rose too fast, resulting in various links "high and high", which brought great financial pressure to the enterprises. In addition, the supply of cotton can not meet the needs of the company or even the whole industry, which affects the normal production of the enterprise.

Zhu Beina, President of the China Cotton Association, said that since May, cotton textile enterprises have been getting more and more serious. Production has been declining, and enterprises continue to stop production. Enterprises say they will stop production if the situation is not changed.

The head of SKYWORTH textile said frankly that the reason why the joint venture was written was also hoped that the departments concerned could attach importance to this problem, solve the problem of cotton shortage, and increase the amount of cotton reserves. If the domestic output is insufficient, the import cotton process will be improved as soon as possible. "Only when the supply of cotton on the market goes up, will the price of cotton fall back." Reporters learned that in July 21st, China Cotton Association organized a forum on cotton textile enterprises, the Ministry of Commerce, the Ministry of industry and commerce, and the national cotton trading market. China Fiber Inspection Bureau The leaders of China Cotton Association, China Textile Industry Federation and nearly more than 70 hundred cotton textile enterprises attended the meeting.

At the forum, Cotton textile enterprises The problems are mainly concentrated on 4 aspects: the amount of cotton reserves is low, the warehousing is difficult, the margin release is slow, and the high-grade cotton gap is large. Among them, the urgent need for textile enterprises is to solve the problem of less current cotton reserves. It is proposed to suspend the purchase of reserve cotton for non production type circulation enterprises. Some cotton textile enterprises do not stock much cotton for various reasons. It is suggested that cotton reserves should continue to be put into storage in September -10, or storage should be normalized; the strength of all parties should be mobilized, and the daily turnover will be increased to 50 thousand tons.

At the meeting, Cao Xuejun, deputy director of the Ministry of consumer goods industry of the Ministry of industry and commerce, also said that your proposal is basically reasonable and will reflect positively. It is also believed that there will be some new initiatives in a short time. The aforementioned insiders told reporters that the relevant departments will actively adjust and improve efficiency based on feedback, but the principle of reserve cotton will surely remain unchanged. After all, 10 million tons of reserve cotton and 600-700 tons of cotton per year are now in China. Now we have invested about 1 million 400 thousand tons, leaving about 8000000 tons and enough reserves. Therefore, as long as the efficiency of cotton storage is increased, cotton prices will soon drop.

In this regard, the latest report of Galaxy futures also pointed out that in July 25th, 30 thousand tons of reserve cotton resources were listed, according to the total amount of 2 million tons, the working days after the last thirty days could be listed only about 500 thousand tons, and the daily listed resources will be less than 20 thousand tons. However, as of now, there is no reduction in the quantity of reserve cotton. If the amount of thirty tons per day is calculated, the amount of reserve cotton will be increased by 300 thousand tons by the end of August. That is to say, with the current rhythm, there are signs that the quantity of cotton put into the market has increased.