Recently, the cotton market has been turbulent around the 10,000-five mark, and it is difficult to see a trending rise or fall in the short term. With the spring sowing of cotton in Xinjiang in full swing, the market will gradually enter the weather speculation stage.
A textile company in Henan said that the current inventory of raw materials is basically about one month old. Cotton prices fell sharply in the early period, and companies have become more cautious in purchasing, focusing on buying as they are used. Nowadays, enterprises’ spinning profits are good and their enthusiasm for production is high. Some small enterprises plan to increase production capacity. Now the possibility of a sharp drop in cotton prices is low, and downstream production enthusiasm is high. Although companies are cautious in purchasing, but taking orders is relatively normal. Unless Sino-US relations continue to deteriorate, otherwise with the support of downstream production and sales, the probability of such an event happening in the short term is very small.
According to other textile companies, corporate orders are very popular before the Spring Festival, and they are basically large orders. The companies cannot produce at all. They are not worried about order problems now. After all, there will be no orders before May. It is the peak season for production and sales. Once it enters the off-season from June to July, companies are worried about whether they can keep up with subsequent orders.
According to professional investors, Xinjiang cotton will enter a period of rising weather starting from April. Moreover, this year’s situation is special. Under the conditions of high food prices and low cotton prices, The issue of land competition for grain and cotton has become more prominent, so the spring sowing area of cotton has attracted much attention. Affected by the Xinjiang cotton target price subsidy, Xinjiang cotton farmers’ income from cotton planting is relatively stable, will not fluctuate greatly, and the risks are relatively small. Judging from the current understanding of the situation, the cotton planting area in Xinjiang this year should be relatively normal and is unlikely to change significantly. Of course, the specific actual planting area needs to be supported by survey data. In addition, foreign cotton planting area data also need to focus on. The short-term cotton market is basically balanced, and there will be no clear advantage between the long and short parties for the time being. </p
