Recently, the progress of cotton picking in various places has been accelerated, but the acquisition progress is not good; lint cotton is waiting for price, and the purchase and sale are slow; the pressure of yarn destocking has increased, companies have lowered their quotations, and the competition between negative and positive factors in the market has intensified.
At present, the harvesting progress of machine-picked cotton in Xinjiang is accelerating, and many areas have not yet opened weighing scales due to the epidemic. Among them, the purchase price of machine-picked cotton in northern Xinjiang remains at 6.0 yuan/kg, and the purchase price in some areas is 6.2-6.3 yuan/kg. Cotton farmers have a strong wait-and-see attitude, and the acquisition progress of cotton ginning companies is slow.
Recently, mainland cotton ginners have started to open weighing scales one after another, and the price of seed cotton has increased significantly compared with the previous week. On the 17th, the mainstream purchase price of seed cotton in Heze, Shandong Province was 8.4-8.7 yuan/kg, an increase of 0.5 yuan/kg from the previous week. However, ginning companies can only purchase 5,000-10,000 kilograms of seed cotton a day.
Recently, the quotations of lint cotton in Xinjiang and the mainland have diverged. In Xinjiang, prices are mainly stable, while cotton prices in the mainland continue to rise. On October 17, the “fixed price” of grade 3128 machine-picked cotton in southern Xinjiang was generally 14,500-14,800 yuan/ton, which was basically the same as the previous week. Some large enterprises adopt the form of “pre-sale”, with the highest quotation being 15,000 yuan/ton. Mainland lint quotations continue to rise. The ex-warehouse price of grade 3128 Xinjiang machine-picked cotton in Shandong, Henan and other places reached 16,500 yuan/ton, an increase of about 400 yuan/ton compared to the previous week.
It is understood that the long-short competition in the cotton market has intensified recently, and the market direction is unclear. At present, the amount of Xinjiang cotton in stock in the mainland has dropped sharply, and panic buying has occurred in some areas to replenish the stock. If this situation does not change, the cotton imbalance between Xinjiang and the mainland will be exacerbated in the short term. On the other hand, the operating rates of both yarn mills and gray fabric companies have declined. As the traditional peak season comes to an end, downstream demand is expected to further decrease.
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