Cotton Prices "Take The Elevator" In The Near Future

The recent surge in cotton prices has plunged to 25%, the biggest decline in recent years.

In recent days, the price of cotton in Lanxi has dropped from 680 yuan per catty to 550 yuan, making some cotton buyers unhappy.

To ease financial pressure, Lanxi's biggest cotton buyer is busy lending money everywhere, and has to take the initiative to sell cotton to the cotton mill.

"Look at the pile of cotton, I feel helpless."

Tong Zhenfang, director of Lanxi Yunong cotton processing plant, sighed that at present, only more than 200 tons of leather had been processed in his cotton mill, plus nearly 200 tons of unprocessed cotton, and the stock fund had reached about 8000000 yuan.

Cotton mills saw a decline in cotton prices and took a wait-and-see attitude instead of buying cotton.

In a short span of a week, his stock of cotton has shrunk by at least about 1000000 yuan, and I don't know what will happen in the future.

Tong Zhenfang said regretfully that he had not grasped accurately.

Textile companies are more cautious when cotton prices fall.

"Now customers see that the price of cotton yarn is falling, they dare not place an order. They can only rely on the original stock to tide over the difficulties."

Zhang Guochun, deputy general manager of Zhejiang golden shuttle Textile Co., Ltd. told reporters that at present, the company's inventory can be completed by the end of the year.

Zhang Guochun thinks, because domestic cotton yarn demand is very large, the contradiction between supply and demand is still difficult to change in a short time, and the price of cotton and cotton yarn is also rising.

They have told their customers how to judge the domestic market, and have studied the countermeasures with their clients, so as to jointly face the pressure brought by market fluctuations.

There are two main factors in the cotton price collapse. First, the government adopted price control measures. In from November 8th to 10th, for three consecutive days, the Zhengzhou Commodity Futures Exchange issued seven successive notices, prompting investors to prudently invest, and the national cotton investment has also increased gradually. The cotton futures have been running away rapidly, resulting in a sharp fall in cotton prices. Two, the supply of cotton in Xinjiang has increased. According to the arrangement of the relevant departments, by the end of December, the railway must ensure that at least 1 million tons of Xinjiang cotton are exported to Xinjiang, and this has exceeded the cotton consumption of domestic enterprises for one month. Analysts believe that the current round