Reserve Xinjiang cotton increased, Zheng cotton continued to fall

From May 31st to June 2nd, 2017, the domestic cotton market prices rose sharply. Among them, the national cotton price A index (CNCotton A), which represents the mainland's 2129B cotton prices, averaged 16,400 yuan/ton, down 20 yuan from the previous week. /Ton; the national cotton price B index (CNCotton B), which represents the 3128B grade cotton prices in the mainland, averaged 16,017 yuan/ton, down 28 yuan/ton from the previous week.　　 In the same week, the weather in the Yellow River Basin was clear and the temperature was high. Drought reappeared in some areas, and the pests and diseases of cotton seedlings increased. Cotton transplanting and replanting in the Yangtze River Basin have been completed. Cotton farmers are stepping up efforts to control insect pests and cultivate soil moisture. The growth of cotton is gratifying. The growth of cotton in Xinjiang is uneven. The weather in northern Xinjiang is fine and the accumulated soil temperature is good, which is conducive to the rapid growth of cotton. In the cotton area of u200bu200bsouthern Xinjiang, there is high temperature and less rain, and the drought is more obvious. During the week, the planned number of cotton reserves was 89,900 tons, the actual transaction was 61,800 tons, the transaction rate was 68.74%, and the transaction rate decreased. From the perspective of transaction prices, the average transaction price was 15,228 yuan/ton, down 130 from the previous week. Yuan / ton. As of June 2, 2017, the accumulated out-of-warehouse transaction of cotton reserves in 2016/2017 was 1,321,800 tons, of which Xinjiang cotton was sold 862,600 tons and real estate cotton was 459,200 tons. This week, the listing volume of Xinjiang cotton increased to about 15,000 tons. Affected by the decline in spot market and futures market prices, traders' bidding enthusiasm decreased, and the proportion of trading merchants dropped from 50.45% in the previous week to 31.84%.　　 In the week, the conventional yarn orders of textile enterprises were acceptable recently. Since June, the orders of enterprises have been full and they have been operating at full capacity. However, the domestic cotton and grey cloth market is not good, the downstream consumption is weak, and the cotton yarn market continues to fall. On the one hand, it is difficult to find high-quality cotton. On the other hand, the downstream market is sluggish. Textile companies are in a dilemma and have to cut prices to attract customers and maintain orders.　　 When the cyclical cargo market continues to fall, in line with the recent continuous decline in US cotton and the drop in spot market prices, Zheng Cotton will not see a sharp decline in the near future, and the probability of consolidation in the range of 15,600-16,000 yuan/ton is increasing. However, under the condition of sufficient domestic supply, the price rebound will not be very strong, and there will be no unilateral upward trend. For spot traders, short-selling operations on rallies are still a good choice. Need to pay attention to the changes in the structure and quantity of cotton reserves. Article Keywords: 　Cotton Reserve Xinjiang Cotton Zheng Cotton