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Once Again, The Violence Of The Cotton Limit! What Happened To The Textile Market?

Jun 15, 2018

Once again, the violence of the cotton limit! What happened to the textile market?

Recently, Zheng cotton once again ushered in a wave of big rally, the main contract CF1809 high to 16,285 yuan / ton, an increase of 665 yuan / ton, CF1901 contract highest price to 17,050 yuan / ton, an increase of over 700 yuan / ton, positions and transactions The amount is significantly enlarged. The 1905 contract rose the most, rising 810 points, and its disk price reached 17445 yuan/ton forward contracts are relatively more favored. Market forecast, Zheng cotton will once again lead the spot price. Zheng cotton and air war is so fierce, the market in the end what happened?

In the past two days, in the circle of friends, cotton enterprises and traders have expressed that they have suspended the quotation from the outside; at the same time, many textile companies also stated that as the price of cotton rose, yarn no longer accept advance payments. It is understood that the length of 28cm on May 15th, the Xinjiang Xinjiang cotton with a fracture specific strength of 27CN/tex is quoted at around RMB 16,100/ton (clear gross weight is settled), and white cotton grade 4 real estate cotton is offered at RMB 15,000/ton. After May 16, spot prices may usher in a wave of new upswings.

In a short period of time, the contradiction between supply and demand quickly fermented, directed the play of today's daily limit. On the one hand, since spring sowing, Xinjiang has suffered many times of rain, snow, storms, dust storms and cooling and other weather. In some areas, the growth of new cotton is damaged. The disaster situation is not optimistic, especially on the night of May 14 and May 15 all-weather storm raids. Will increase the disaster. It is not difficult to see from the futures price trend that two recent serious disasters in southern Pakistan's cotton region caused the market's continued slump in the nation's cotton growing area. The industry expects the cost of re-supplementation to increase substantially, and the cotton market Concerns and concerns about cotton production are intensifying.

On the other hand, La Niña’s disaster risk increased during the year. According to the news released by the National Defense, the La Niña phenomenon has now formed and gradually increased. According to the analysis of historical data, La Niña affected the overall meteorological year-on-year deviations. In the flood season, extreme weather events may occur frequently, including tornadoes, hailstorms, and heavy rainfall in April hitting the cotton fields in the southeastern United States, and floods and floods in some areas. This led to a further spread of production cuts, which further exacerbated market concerns.