State Cotton Stores Continue To Supply Textile Enterprises, But There Is No Improvement In Consumption.

It is understood that the monthly cotton consumption of textile enterprises dropped to nearly 480 thousand tons from the peak of nearly 700 thousand tons.

By the end of June, China Cotton Association's statistical social inventory data is 1 million 550 thousand tons, if the peak period of consumption, may end August at the beginning of September, social inventory is depleted, but if the trough period of consumption will have nearly 600 thousand tons of surplus.

In the relatively loose supply stage, textile enterprises will not take large quantities.

With the use of mining strategy, it must be a common way of purchasing for textile enterprises.

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It is also natural for prices to remain weak at the stage of continuous supply and no improvement in the consumption of textile enterprises.

Since May 8th, Zheng cotton futures market has shown a gradual downward trend, especially in July, cotton prices showed a relatively low trend, in the beginning of July, the stock market plunged under the stimulation of continuous decline, cotton.

It has been lower than spot price, and the difference between inside and outside cotton price has been greatly reduced.

The main reason is that in July, the implementation of the national cotton storage in China, the high inventory of new cotton stocks and the very low consumption of textile enterprises in the traditional off-season.

According to the guidance of the national cotton reserve policy, it is expected that the reserve cotton will be stopped in September 1st. Such a large reserve cotton inventory will lose its role in the supply of the market. We should reassess the supply and demand before the next national cotton saving wheel. At this time, the output of new cotton should be estimated.

By reducing the area, the estimated 2015 cotton production is estimated at about 5 million 800 thousand tons, which is 600 thousand tons lower than that of last year. In addition, this year's continuous high temperature and drought in Xinjiang has affected the yield per unit area and the actual output is lower than the above figures.

Secondly, after the sales process of the high and low price difference of cotton last year, cotton planting in Xinjiang has taken various measures. The quality of cotton is expected to increase significantly over the past year.

If consumption is not expected to show a marked decline, the contradiction between supply and demand should be improved. Even if the reserve cotton is excluded, there will be a gap.

In addition, textile enterprises purchase new cotton will enhance.

Therefore, cotton prices should have a certain degree of rebound before the new cotton market comes up a lot. The time may be in mid 9 and October. If prices can be predicted at the end of August, the price will rebound earlier.

The height of the specific price rebound should be balanced by the degree of production decline. At this stage, I think the textile enterprises should consider avoiding the high cost caused by the rising stage, and stabilize the current low cost of raw materials, so as to provide strong conditions for the high season to compete for the market.