In the past week or so, the market price of Zheng Cotton CF2209 contract has continued to consolidate in the range of 20,000-20,500 yuan/ton, showing a weak balance state of “weak rebound, with support below”. Cotton traders and ginners with high hedging rates have obvious sales. While the cotton processing enterprises in Xinjiang, which have low hedging rates and relatively large inventories, are facing greater sales pressure.
Some cotton companies in Kuitun, Tacheng and other places said that as of mid-June, the comprehensive cost of lint cotton in the warehouse in 2021/22 has reached 24,500-25,500 yuan/ton, and the weight of cotton picked by the “Double 28” machine in the warehouse in Xinjiang The quoted price is about 20,600-20,800 yuan/ton, and the current loss range generally reaches 3,500-4,500 yuan/ton. The sales pressure of cotton processing enterprises has increased.
Since early June, Xinjiang cotton inquiries and shipments in 2021/22 have been tepid. The transaction situation of real estate cotton in Shandong, Hebei, Jiangsu and other provinces has improved, and the stalemate between buyers and sellers has eased. A trader in Heze said that in the past half month, 17 batches of real estate cotton stored in warehouses in Heze, Dezhou, Cangzhou and other places have been sold out, and 100% payment has been achieved.
The company’s analysis believes that first, due to concerns about the escalation of the import ban on Xinjiang cotton products by the United States and Europe, some foreign trade companies and OEM companies have turned to increase the purchase of port customs clearance cotton and real estate cotton to avoid export risks; Second, the fiber length of real estate cotton in the Yellow River Basin and Yangtze River Basin in 2021/22 generally reaches “double 28” and above, with good spinnability and consistency, forming a certain degree of substitution for Xinjiang cotton and foreign cotton; third, this year’s first and Orders for high value-added cotton yarn were relatively scarce in the second quarter, and textile companies lowered the cotton grade and yarn count. According to the survey, the price of hand-picked cotton in the “Double 29” real estate in the mainland is 500-700 yuan lower than that of Xinjiang machine-picked cotton. /Ton.
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