Xinjiang: New cotton processing is coming to an end but sales have not improved yet

Affected by the mutant strain of Omicron and changes in the external macro-environment, the overall trend of the commodity market has been weak recently,Cotton yarn and cotton futures contracts maintain range fluctuations, and Xinjiang’s cotton processing as a whole is gradually coming to an end.

According to data from the FiberQuality Monitoring Center, as of December 20, Xinjiang’s cotton inspection volume has reached 4.067 million tons. It is also understood that the processing volume of new cotton in Xinjiang has reached about 4.45 million tons, accounting for about 85% of the predicted output. In terms of sales, as the Zheng Cotton 01 contract is approaching delivery, some traders have stopped making basis difference purchases for the Benchmark 01 contract. At present, downstream textile mills are only replenishing their stocks sporadically to maintain basic production.

According to the person in charge of a local cotton processing company, there is currently no good way for the company to solve the sales dilemma. The only thing they can do is to wait for a favorable turn in the market. They also hope that the country can introduce some favorable policies. They do not expect to be able to do so this year. To make money, even a small loss is acceptable.

AAA

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