As Xinjiang cotton processing comes to an end, the spot inventory of cotton companies has gradually increased. Some companies’ lint cotton has entered Xinjiang futures delivery warehouses, and the number of Zheng cotton warehouse receipts continues to grow.
As of December 28, the number of Xinjiang cotton enterprises sent for inspection reached 4.44 million tons, slightly lower than the same period last year. This year, Xinjiang seed cotton was opened late this year, and most companies began to purchase large quantities after the National Day. Affected by high costs, new cotton sales have slowed down. As the amount of lint processed increases, the number of registered warehouse receipts for Zheng Cotton increases. As of yesterday, the number of registered warehouse receipts for Zheng Cotton was 12,490, an increase of 7,638 from 4,852 on December 1. The main reason for the increase in the number of registered warehouse receipts is that cotton companies are less willing to sell, and they hope to sell Zheng cotton after the price rises in the future.
Since December, the main contract of Zheng cotton has maintained a wide range of fluctuations, with the highest price on the 28th being 20,405 yuan/ton. The basis quotation of Xinjiang cotton in the market continues to be dominated by two contracts, CF2201 and CF2205. The basis difference between 3128 grade cotton and the recent month contract is 500-1000 yuan/ton, while the basis difference with the main contract is 1200-2000 yuan/ton. The spot transaction price has increased along with the increase in futures prices. However, as the Double Festival is approaching, the operations of textile companies have not improved significantly. Some companies plan to have a holiday in mid-January and are less enthusiastic about purchasing raw materials.
</p
