Cotton High Down, Spot Fell Below 16000 Yuan / Ton

According to statistics, on March 1, the average price of domestic lint spot market was 16576 yuan / ton, while on March 11, the average price of domestic lint spot market was 15850 yuan / ton, down 4.38%. In March, cotton market changed from a good February, the futures market into a fall. The domestic seed cotton delivery has come to an end, and the purchase heat is cooling down. In 2020 / 2021, the delivery of new cotton is basically completed. At present, there is no seed cotton inventory in Northern Xinjiang, and there is a little seed cotton inventory in southern Xinjiang.

Internationally, USDA's supply and demand report in March lowered the US cotton production and year-end inventory, resulting in a sharp drop in US cotton prices, and a decline of more than 4% in the ice period. Since the beginning of this month, the market of Zheng cotton has declined from a high of 16540 yuan / ton to 15600 yuan / ton. In the long run, it is expected that the recent decline of Zheng cotton will slow down or show a fluctuating trend.

Downstream: the profits of spinning enterprises still exist, but the speed of receiving goods has slowed down. The low futures prices in the past half a month have made the textile enterprises' wait-and-see mood gradually rise, and yarn enterprises began to adjust prices. Relevant data show that in January 2021, grey cloth inventory was 14.94 days, yarn inventory was 9.21 days, both month on month decline. The textile industry began to pick up in October last year, and the textile enterprises received orders and arranged to April this year, with high production profits. At present, there is still a demand for replenishing cotton inventory.

Analysts believe that at present, textile enterprises have sufficient orders, the operating rate continues to rise, and the peak demand season in spring and summer is highlighted. In addition, China's textile and clothing export data from January to February 2021 is still bright, which is good for the cotton market. In the long run, focus on the future trend of futures, cotton prices may present shocks in the future.