After Three Months, The Round Of Cotton Reserves Came To A Successful End

The delivery time of the reserved cotton is from July 1 to September 30, lasting for three months. During the round out period, bidding enterprises actively bid for reserve and kept a high transaction rate. The transaction price generally showed a shock rise, as shown in the figure.

From the transaction situation, since July 1, the total amount of listing was 504000 tons, the total transaction volume was 503400 tons, and the transaction rate was 99.87%; among them, Xinjiang cotton was listed with 283100 tons, and the trading volume was 283100 tons, with the transaction rate of 100%; the mainland cotton listing volume was 220900 tons, the trading volume was 220200 tons, and the transaction rate was 99.70%. One of the main reasons for the high enthusiasm of bidding enterprises is that the textile and clothing consumption classification is more obvious during the rotation period, the demand of textile enterprises for low-grade cotton is significantly increased, the reserve cotton has high performance price ratio, which can fill the gap of cotton consumption to a certain extent, and textile enterprises have high bidding enthusiasm; in addition, the domestic cotton price is in the historical low price range, and traders are also very concerned about the reserve cotton and bidding volume The polarity is high.

According to the national cotton trading market data, 264 enterprises participated in the bidding, including 183 textile enterprises and 81 traders. In terms of trading volume, the cumulative trading volume of textile enterprises was 234100 tons, and that of traders was 269200 tons. From the two data, although the number of textile entrepreneurs participating in auction storage is twice that of traders, the reserve of auction is lower than that of traders. There are three main reasons for the low auction reserve of textile enterprises: first, in order to reduce the capital pressure, the auction reserve is mainly used as soon as possible; second, traders actively bid for cotton, which has squeezed the auction storage space of textile enterprises to a certain extent; third, in order to ensure cash flow, some small textile enterprises do not directly participate in auction storage, but choose to entrust traders to auction or directly purchase in small and medium quantities from traders 。 Some bidding textile enterprises said that during the rotation period, the market demand for conventional products was high, and the reserve cotton was the preferred raw material for textile enterprises. However, a large number of auction and storage by traders reduced the selection of textile enterprises. The relevant departments were called upon to limit the auction storage of traders and ensure the cotton use of textile enterprises.

Generally speaking, under the influence of global epidemic situation and Sino US economic and trade friction, the demand of foreign trade market has declined, and the deep development of domestic market has become the main target of textile enterprises. With the adjustment of domestic product structure, the reserve cotton with high performance price ratio effectively fills the gap of cotton used by textile enterprises, and reduces the cost of cotton to a certain extent.