In the past few days, orders for printing and dyeing factories in the Pearl River Delta region of Guangdong have been bleak. In order to avoid losses and save various costs, some printing and dyeing companies have taken annual holidays in advance. Well, this piece of information has attracted the attention of many people in the industry. In fact, we can go the other way and talk about the changes in the entire market from the perspective of cotton market conditions.
When polyester chemical fiber raw materials are falling, cotton and yarn prices are also continuing to fall. Especially starting from October 15th, within more than a month, the entire cotton futures fell by 2,800 yuan per ton, a drop of 12%, and cotton yarn fell by 9%.
The main reason for this sharp decline is the shrinking of downstream orders. Downstream companies have a strong wait-and-see atmosphere, including the impact of the entire international environment. According to predictions by professionals, the price of cotton yarn still has room to drop by 1,000 to 2,000 yuan per ton. On the morning of the 1st, Zheng cotton futures continued to fall, once falling below 20,000 yuan during the session, and the trend was still very weak.
Suspending the release of central cotton reserves, Zheng cotton rose sharply
There is another piece of information that you should also pay attention to. On the 1st, an announcement was made about suspending the release of the second batch of central reserve cotton to curb this downward trend. Suspending the release of cotton reserves means that the supply of cotton on the market will decrease in the short term. New cotton may become the main supply resource. This is undoubtedly a support for Zheng Mian, which has fallen sharply for three consecutive days.
Source: China Cotton Network
On December 1, the main contract of Zheng cotton rose in a straight line in the afternoon, reaching a maximum of 20,800 yuan/ton, with a closing price of 20,695 yuan/ton, an increase of 0.63%.
December 1, time-sharing chart of Zheng Mian’s main contract
Recent trends of Zheng Cotton’s main contracts
Textile futures market performance on December 1
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