Yarn Market Is Running Weak, Terminal Demand Has Not Yet Improved, Prices Are Difficult To Rise.

The market of cotton yarn has changed little. Domestic demand orders are still good and prices are more stable. It is reported that the demand for C40S in the near future market is better, the speed of goods delivery is faster, the supply of textile enterprises exceeds demand, but the price is difficult to rise. OEC32S corresponds to medical gauze, the goods are also better, the price center of gravity has been lifted up; the remaining varieties are relatively light, and the stock is still rising slightly. The overall fundamentals of pure cotton yarn are still poor, and terminal demand has not improved. It is expected that the cotton yarn market will remain weak in the short run.

[market overview]

　　 Today, cotton spot trading has improved slightly compared with yesterday. At present, the willingness of the textile enterprises to increase their storage is still not strong. Today's mainstream purchasing list is in the 11400-11500 section of the CF09 contract, with a small number of orders placed at about 11600 of the CF09 contract. Today, Zheng cotton futures concussion dropped, CF2009 received 11605 yuan / ton, fell 25, and CF2101 received 12140 yuan / ton, down 30.

The price of direct spinning polyester and short price has been reduced slightly, and negotiations have been carried out. The focus of 1.4D trading has been maintained at around 5700-5900 yuan / ton. Fujian pure polyester yarn offers stable, T32S mainstream offer 10000-10200 yuan / ton, Fujian polyester cotton yarn quotation stability, TC65/35 32S mainstream 14000-14200 yuan / ton.

Viscose staple fiber market is relatively stable in recent years. After initial inventory transfer, the pressure of viscose factory has been reduced. At present, the market is not active, but some replenishment has just started. In terms of price, the median fiber is more than 8800 yuan / ton, and the high-grade fiber is 9200-9300 yuan / ton.

　　 The price of the cotton yarn market is weak, and there are still no hot spots. The downstream is basically based on just demand replenishment, and the price of yarn varies little. Besides the price of polyester yarn, the price of other yarns kept stable.

　　 Today, the spot market of imported cotton yarn is stable, and the market maintains 3-4 turnover atmosphere. Cloth factory boot maintenance, demand based replenishment, traders mood is very cautious, more worried about the needs of the future market. From the order, the demand recovery is not fast, but the author recently investigated the situation in Turkey, found that European orders have gradually recovered signs, Italy orders have been restored, from the point of time, 6-7 months, China can receive a wave of orders, or can form a support for the market, but the order quantity is still difficult to assess.

The price of imported yarn is stable today, and the turnover is light. Factories in India are increasing, but factories are still running low. The price of Vietnam's external market is steady. The cotton mill with tentative price increases has not been traded, and demand has not been improved. Pakistan will continue to operate on a low startup after the festival.

　　 According to the volume statistics of China Textile City, the total sales volume of grey cloth today is 7 million 680 thousand meters, an increase of 840 thousand meters compared with yesterday. Among them, 4 million 920 thousand tons of chemical fiber cloth were sold today, accounting for 64% of the total sales, and 550 thousand tons of cotton cloth, accounting for 7.16% of the total sales, and 810 thousand tons of cotton cloth, accounting for 10.5% of the total sales.

Pricing structure and arbitrage analysis

　　 As of May 27th, domestic CY C32 price was 18700 yuan / ton (0), India C32S price 18300 yuan / ton (0), price difference 400, Vietnam jet C32S price 18500 yuan / ton (0), price difference 200, no arbitrage opportunities.

[technical analysis]

　　 In May 27th, the price of cotton yarn 09 contract dropped. The highest price is 19520 yuan / ton, the lowest price is 19280 yuan / ton, closing price is 19340 yuan / ton, compared with the previous trading day, it reduced by 50 points and the position was 8198, which was 99 hands lower than that of the previous trading day.

[outlook]

Recently, the price of cotton yarn CY009 contract dropped, and cotton spot trading improved today. The market of cotton yarn has changed little, yarn stock has risen slightly, and the market is not optimistic about the market outlook. It is advisable for speculators to wait and see. (for reference only)