The cotton market is not busy in peak season in September. Can the October market be expected?
The domestic cotton yarn market was “tepid” in September
Domestic cotton prices have been rising steadily since September. They have not experienced the expected craze during the Gold, Nine and Silver Tens. Cotton yarns are generally stable, transactions are deserted, and the market is still sluggish. The international cotton market was deserted due to the holiday. The quotation of imported cotton remained stable and the spot quotation increased slightly. The recent reserve cotton auction is coming to an end. Yesterday, the reserve cotton resources on the market were still only 25,700 tons. In the morning, all reserve cotton was sold, and the average transaction price rose again. to 13790, as the reserve cotton auction is coming to an end, fabric companies are actively stocking up, and the reserve cotton listed resources have been reduced from 30,000 tons to about 25,000 tons. It is estimated that the reserve cotton auction will be particularly active this week, and the average transaction price will increase. The market expects that speculators will once again speculate on the issue of daily investment volume. If the issue of daily investment volume is speculated again in the future, the market may rise again.
Currently, Xinjiang is an area where new cotton was purchased earlier. The opening price is still 6.5-7 yuan/kg. The cotton price has not reached the expectations of cotton farmers, and the new flowers purchased in the early stage have a large moisture content. , cotton farmers are reluctant to sell their cotton. In the long run, domestic cotton is still in a cycle of consuming large amounts of cotton stocks. It will be difficult to restore previous production in the later period. Therefore, the long-term Zheng cotton shock is relatively strong. In the short term, the quantity of reserve cotton on the market will decrease, and the price of reserve cotton will increase actively. It is estimated that the market will be strong before October.
The previous G20 summit caused many downstream textile printing and dyeing companies to reduce production and suspend production. Some printing and dyeing companies even closed down directly, and the atmosphere of pure cotton yarn shipments was deserted. The large amount of cotton yarn inventory has caused the current decline in cotton yarn prices to slow down, but the price continues to decline. Downstream orders still cannot meet demand during the small peak season. There are no substantial large orders from the downstream to reverse the situation, and textile companies have no confidence to continue. Most of them are shipped at the same price, and prices continue to decline. As cotton prices gradually stabilize, the decline has slowed down in recent days.
Can the peak season of cotton yarn in October be expected?
With the end of the G20 summit, printing and dyeing companies in the fabric workwear industry have also begun to pack their bags and start anew. Orders from trading companies are gradually being implemented. Recently, the main entities have been staking out small batches. Orders will increase in the future. However, with tight delivery times, market conditions are average, demand is not large, and customers are not willing to accept orders. They are mainly repeating old orders. , the market price is stable but declining, and customers with orders in hand will gradually switch to firm orders. The dyeing factory has basically filled its orders and is producing at full capacity. Customers of hemp varieties have gradually begun to place orders, and it is expected that the transaction volume will increase in the future. In addition, in recent years, Xinjiang’s spinning production capacity has expanded rapidly, and its quality and capital cost advantages have allowed it to quickly replace imported cotton yarn. At the same price, downstream weaving factories prefer domestic cotton yarn, on the one hand, the quality is stable, and on the other hand, it On the one hand, Xinjiang yarn is expected to further occupy the imported yarn market share in the mid-to-high-end cotton yarn market, which will certainly benefit domestic demand.
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