In recent trading days, all Zheng cotton contracts have fallen off a “cliff”. CF2109 has plummeted from a high of 16,355 yuan/ton, and the intraday low is close to 15,500 yuan/ton, triggering cotton processing companies, traders, and speculation. There is a certain degree of panic among merchants, market sentiment has turned bearish, and bulls are trying to hold on to the 15,500-16,000 yuan/ton range.
According to feedback from some traders and processing plants, Zheng cotton has plunged sharply, and pending orders and point-price transactions are significantly more active than in early May. However, “fixed price” transactions have been affected by buyers. of neglect. As the price of Zheng cotton approaches 15,500 yuan/ton, hedging traders and futures companies have increased the quantity of new cotton on the shelves in 2020/21, and the quotations are also very active. The sudden influx of a large amount of cotton circulation resources has increased the pressure on spot prices. big.
Zheng cotton has returned to the 15,500-16,000 yuan/ton range. Should textile companies purchase at bargain prices to replenish their stocks? Judging from the survey, in the past two days, the number of cotton textile mills and middlemen who have gradually entered the market to inquire and purchase goods has gradually increased compared with the beginning of May, and the spot transaction atmosphere has improved. Some cotton-related companies believe that purchasing is the right time. The reasons are summarized as follows:
First, in the past half month, the sales volume and price of cotton yarn, gray fabrics, etc. have increased, especially C40S, C32S, The production and sales of conventional yarns such as C26S have performed satisfactorily (some light textile markets in Guangdong, Jiangsu, Zhejiang and other places have reported that the supply of 40S medium and high yarns is tightening), and their ability to withstand cotton prices and digestion has increased; secondly, based on time, in order to maintain the cotton grade and maintain The quality of cotton yarn is stable, and most cotton spinning mills have entered the raw material replenishment cycle in mid-to-late May. Third, due to the recent continued recovery in the situation of downstream fabrics, clothing and terminal orders, the progress of gauze payment recovery has accelerated, and the capital flow pressure of textile enterprises has significantly eased. Therefore, replenishment The willingness and confidence to stock up continue to rise; fourth, the recent weather speculation in the Xinjiang cotton area and the pressure from commodity imports are still prominent, and the risk of entering the market procurement is relatively low. </p
