Since the reserve cotton was released on July 5, the hot bidding situation has continued unchanged. Cotton textile companies bid actively and the transaction volume was high.
In the two weeks from July 5 to September 16, China Cotton Reserve Management Co., Ltd. listed a total of 95,600 tons of cotton reserves, including 62,900 tons of Xinjiang cotton and 32,600 tons of real estate cotton. The average transaction price of reserve cotton is 16,523 yuan/ton, discounted to the standard grade (3128) price of 17,810 yuan/ton, the highest transaction price is 17,960 yuan/ton, and the lowest price is 15,950 yuan/ton; among which, the average transaction price of Xinjiang cotton is 16,603 yuan/ton, The average price increase is 2,379 yuan/ton; the average transaction price of real estate cotton is 16,169 yuan/ton, and the average price increase is 1,852 yuan/ton.
July 5-9 is the first week of reserve cotton release, and the lowest price is 15,501 yuan/ton. As of July 9, a total of 47,700 tons of cotton reserves have been released, and 47,700 tons have been actually traded. The average transaction rate is 100%, and the average transaction price is 16,398 yuan/ton. Among them, the cumulative transaction volume of Xinjiang cotton was 31,700 tons, accounting for 66.46% of the total transaction volume.
There are three main features of the cotton reserve in the first week:
First, the daily volume remains stable and the transaction rate is high. This year’s reserve cotton rotation has no limit on the daily amount of input, and in principle, a balanced input will be implemented. Judging from the delivery situation in the first week, the daily delivery volume was less than 10,000 tons. Judging from the transaction situation, the daily transaction volume maintains 100%, and textile enterprises account for 60% of the transaction volume. It can be seen that reserve cotton is still highly attractive to textile enterprises.
Second, the average transaction price has not changed much. The average transaction price on the first Sunday of the reserve cotton round was maintained at around 16,400 yuan/ton, which is equivalent to a price of 3128 yuan/ton of about 17,700 yuan/ton, which is higher than the spot price. In 2021, the cotton reserve fuse making machine will be adjusted from a fixed price to a dynamic price, which will have a certain inhibitory effect on the sharp decline in cotton prices.
Third, the transaction rate of Xinjiang cotton is 100%. The average daily volume of Xinjiang cotton that week was 6,300 tons, accounting for more than 60%. It is understood that the reserve cotton released that week was mostly cotton from 2012 and 2013, including some Xinjiang hand-picked cotton, and its indicators were better than last year’s cotton. At present, high-quality cotton is relatively scarce in the market, which is why textile companies are more enthusiastic about auctions.
From July 12th to 16th, the reserve cotton sales floor price was 15,724 yuan/ton (equivalent to standard grade 3,128), an increase of 223 yuan/ton from the previous week. Although the floor price rose sharply, companies were bidding The popularity remains undiminished and the transaction rate continues to be high. Judging from the bidding situation, trading companies, relying on their financial advantages, currently have more auction transactions than textile companies.
The current mid-end yarn market is relatively good. The inventory of finished products of textile enterprises remains low, and the enthusiasm for procurement and production is high. The price of reserve cotton is 300 yuan/ton to 400 yuan/ton lower than the spot price of the same grade, which has certain advantages. price advantage. Driven by the linked rise in futures and spot prices, downstream yarn prices also rose to varying degrees. The price transmission process was relatively smooth, and spinning still maintained high profits. This week, Zheng cotton has continued to hit new stage high prices, and is very close to the important mark of 17,000 yuan/ton. Regarding the new year’s seed cotton acquisition market, the market is still bullish, and to a certain extent, it has stimulated companies to actively bid for reserve cotton. .
Traders in Jiangsu, Henan and other places believe that reserve cotton is favored by cotton textile companies for the following reasons: First, spinning cotton yarn with a count of 40 and above, reserve cotton has a certain price advantage. The average metric-weight transaction price of reserve cotton in the first week was 16,398 yuan/ton. Not only were there very few Xinjiang cotton of color grades 41, 51, and 12 in the inland warehouses, but the quotations were generally between 16,700 yuan/ton and 16,900 yuan/ton, which was higher than the reserve cotton transaction price. The price is 300 yuan/ton ~ 500 yuan/ton; secondly, compared with the current settlement of original orders for Xinjiang cotton in the mainland’s warehouses and public inspection of real estate cotton (some batches are more than half a year away from the processing period, downgrades are not uncommon), the reserve cotton In addition to the weight according to the original order, other indicators are re-inspected. Cotton spinning mills generally believe that the quality and spinnability of state-owned cotton are more transparent and credible; thirdly, compared with July to September, Xinjiang cotton and real estate cotton purchases require 100% cash and spot reserves. Cotton can be pledged for financing at any time, reducing the risk of a large amount of working capital being occupied; fourth, the reserve cotton supply is large and the auction time is long, making cotton spinning enterprise procurement more flexible and convenient, and warehousing fees, warehouse fees and other expenses are very high. Transparent; fifth, in the past half month or so, domestic OE yarn, C21 to C40 cotton yarn inquiries and transactions have continued to bottom out (the supply and demand of open-end knitted yarn in Guangdong, Jiangsu and Zhejiang markets are tight), and domestic sales orders are expected in August and September. It falls in advance, so cotton spinning mills are more enthusiastic about bidding and hoarding cotton reserves. </p
