Cotton Reserves Are Coming Out Later Than Expected.

11-17 March 2016, China

Prices continue to fall, representing countries with 2129B cotton prices in the mainland.

The average price of A index (CNCotton A) is 12597 yuan / ton, down 87 yuan / ton compared with last week, and the average price of cotton price B index (CNCotton B) on behalf of the 3128B grade cotton price in the mainland is 12001 yuan / ton, down 103 yuan / ton.

Right now,

Entering the critical period of spring plowing and broadcasting, spring and irrigation have been launched in various fields and villages, and cotton farmers in the mainland have begun to purchase fertilizers, pesticides and other materials to prepare for spring sowing.

It is understood that due to the continuous downturn in the cotton market, cotton growers lack confidence in planting cotton in 2016, and cotton planting intentions are low. Especially in the mainland, cotton planting area is expected to decrease greatly.

In addition, on the three three session of the China Cotton Association, Wang Shengmin, price division of the national development and Reform Commission, introduced the policy of Xinjiang cotton target price in 2016 to be released to the public before the end of March.

March 17th, mainland 2128 Xinjiang

The price is 12200-12400 yuan / ton, the actual turnover is still giving way; the real estate cotton price is 11300-11800 yuan / ton, according to the quality price.

Short term spot trading is slack, and reserve cotton is still the focus of attention.

During the week, the enthusiasm of raw material purchasing was not high, and pure cotton yarn remained weak.

Some enterprises have reflected that since the middle of March, summer orders have been increasing gradually, which is conducive to the sale of fine yarn, and textile enterprises gradually adjust their product structure.

Orders are recovering from the previous week, but the overall situation is still not optimistic.

In addition, at the China International Textile yarn (Chun Xia) exhibition in 2016, cotton textile enterprises had a lot less business than chemical fiber enterprises. Not only a small number of exhibitors but also a variety of products, all kinds of new chemical fiber products can be seen everywhere, and its new functional characteristics aroused widespread concern.

At present, the market is waiting for the policy of reserve cotton production to go to the floor. The national development and Reform Commission Si Yinjian said that the time for storing cotton wheels is expected to be in the middle of 4. Before the rules are promulgated, the textile companies still remain cautious about buying cotton, and there is no new news to stimulate the fundamentals.

ICE futures, the current US cotton shipping speed increase provides a continuous support for the price trend, and the trend of short-term technology graphics is better. Due to the delayed release of China's reserve policy, cotton prices will be looked for in other ways in the short term.