Recently, market investors have been fiercely competing for the position of Zheng Cotton’s main CF of 15,000 yuan/ton. On the 21st, the bulls once again had the upper hand. The highest price of the main force before the midday close reached 15,095 yuan/ton, with the potential to break through 15,100 yuan/ton. . As futures prices continue to rise, some cotton ginning companies have waited until the expected entry point for hedging, and the huge stone in their hearts has also fallen.
Since the launch of new cotton this year, the high cost of cotton has been a concern for ginning companies and even the entire market. Especially as cotton processing in and outside Xinjiang comes to an end, lint stocks continue to rise, and cotton companies are in urgent need of funds. However, the processing cost of many spot cotton in Xinjiang is 14,500-15,500 yuan/ton, and the early futures price is seriously discounted by the spot price. Amid the dilemma of lack of futures hedging opportunities, enterprises under pressure at the forefront of production are even more miserable. With the futures price standing at 14,500 and 15,000 yuan/ton, Xinjiang companies seized the opportunity to carry out hedging and spot transactions in an orderly manner and transfer risks in a timely manner. At present, the pressure on northern Xinjiang companies has been basically released.
According to the author’s research, most of the machine-picked cotton from ginning companies in northern Xinjiang has been digested through resale intermediaries, textile companies or registered warehouse receipts. There are also some machine-picked cotton and hand-picked cotton in southern Xinjiang. Shipping. Although there are still some companies that have not achieved floating profits due to factors such as high seed cotton acquisition costs or contracting fees, most Xinjiang ginning companies are very pleased to see that Zheng cotton will break through the 50,000 mark before the end of the year. For a long time, textile companies have maintained the main tone of picking at any time. In addition, the cost performance of foreign cotton has increased, and the recovery space for domestic cotton demand has not been ideal. However, in recent days, cotton yarn transactions have increased and prices have continued to rise. Its purchase and sales are no less popular than raw cotton. Today, the cotton yarn prices of some companies continue to increase by 500-1,000 yuan/ton, allowing the industry to feel the stimulation brought by the short-term increase in consumption, and also Once again, it provides strong support for Zheng cotton’s rise.
It is expected that some textile companies will still reserve raw materials before the Spring Festival. Zheng cotton may have room to continue to rise, and the income of ginning companies is expected to continue to increase. The epidemic has reappeared in many places in China recently, and industry players must not relax risk prevention and control. </p
