Business community: raw material costs support the cotton market to stabilize

According to price monitoring business community, as of November 4, the domestic spot market 3128B lint prices in 15300-15470 yuan / ton, the average price of 15390.43 yuan / ton, up 0.23% over the beginning of the week, cotton prices in the week running smooth.

In terms of futures, Zheng Cotton's 1701 contract showed a downward trend at the beginning of the week. After the downturn, it strengthened. It closed at 15230 yuan/ton on November 04, a slight increase of 0.2% from the settlement price of 15,200 yuan/ton last Friday. ICE cotton quickly fell at the beginning of the week, and then gradually stabilized, especially on October 31, as the index fund extended its long position from the recent contract to the distant month contract, the ICE December cotton contract fell sharply by 2.77% to September 12. The largest intraday percentage decline since the day. Overall, Zheng cotton was stable overall this week, and ICE cotton slipped significantly.

The reserve cotton has been closed for one month, and the market supply has gradually shifted to new cotton. According to the national cotton market monitoring system, the survey data of 1837 households in 87 counties and cities in 14 provinces and regions showed that as of November 4, the national new cotton picking progress was 80.3%, down 4.6 percentage points year-on-year, 4.8 percentage points lower than the average of the past four years. In Xinjiang, the picking progress was 79.0%; the national sales rate was 77.6%, down 0.4 percentage points year-on-year, and up 2.5 percentage points over the past four years. The progress of Xinjiang's sales was 90.0%. New cotton picking progress is relatively slow and the sale is basically stable. Due to the consumption of stock cotton in the downstream textile enterprises, there is demand for replenishment, the market is improving, and the price of lint is stable. Downstream cotton prices also showed a slight rebound, according to the business community price monitoring shows that, as of November 4, 21S knitting class product with high cotton ring spun yarn average price in 22612.50 yuan / ton, weekly rose 0.39% over. With the end of the “Golden September and Silver 10” season for weaving, fabrics, clothing and foreign trade enterprises, downstream companies are more cautious about large orders, long delivery orders, and no-profit orders.

Sun Minhua, an analyst at the business community, believes that the current cotton picking and selling is about 80%, and the cost of new cotton is basically stable. This week, the textile enterprises are weakened by the downstream situation and are relatively resistant to the current cotton price. On the other hand, due to the early stage The stock of cotton in the country was reduced. According to the demand for cotton blending, there was a willingness to replenish stocks, which led to a weak recovery in cotton prices this week. In general, the cost of domestic new cotton is high and the downstream price of cotton is difficult to digest. It is difficult for cotton prices to fluctuate greatly. It is expected that cotton prices will continue to run smoothly next week. Zheng Mian was frustrated by the rapid decline of ICE cotton this week, but the bulls are still there, and it is expected that the shock will stabilize next week.

Rash guard

Guangzhou LIDONG Garment Industrial Co., Ltd. , https://www.lidonggarment.com