Xinjiang: Cotton Price Rises Slightly, Helpless Or Optimistic?

As of December 8, lint processing capacity of Xinjiang cotton processing enterprises has reached 4.03 million tons, accounting for 78% of the expected total output; according to the data of China fiber quality monitoring center, as of 24:00 on December 7, the inspection volume in Xinjiang was about 3.54 million tons, accounting for 68% of the expected total output; Although the supply of new cotton on the market is gradually increasing, the enterprise's quotation is slightly increased. At present, the mainstream quotation of standard grade double-28 machine is 14700 yuan / ton (public). The price rise, cotton enterprises in the end is helpless or optimistic about the future?

The author communicated with some local cotton enterprises and learned that this year, affected by the enterprise's rush to collect, the cost and price of seed cotton increased. Although the futures prices follow the rise, most enterprises lack confidence in hedging. Later, Zheng cotton futures did not appear suitable opportunities, and spot sales have been tepid. It is understood that only Changji region in Xinjiang has a good price advantage, while other regions are in general.

Near the end of the year, the quotation rose slightly because the interest of holding spot funds and the cost of warehousing costs were increasing, and the domestic epidemic situation was well controlled, the resumption of work and production was fast, and there was continuous good news in terms of vaccines. Once the downstream demand recovered, it was estimated that the market would not be worse. Therefore, some enterprises now have a sales mentality that the price is appropriate. If they can take goods, they should go first to control the risk. If not, they should wait and see for the opportunity.