After the holiday, the cotton futures spot market is booming. The price of Zheng cotton has increased significantly, and the spot price has also increased accordingly. Downstream textile companies have also raised cotton yarn quotations, and the Xinjiang seed cotton purchase market is in full swing. Under this situation, although local cotton companies in Hebei have increased the purchase price of seed cotton, they still remain cautious in purchasing.
On October 13, the main contract of Zheng Cotton Futures CF2101 has exceeded 14,000 yuan/ton, continuing to increase by 300 yuan/ton from the previous trading day, and has increased by more than 1,000 yuan/ton from before the holiday. This has a direct boosting effect on spot market prices. At present, due to the low initial length and strength of Xinjiang new cotton, the quotation price of “Double 27” lint cotton is 14,300-14,500 yuan/ton (metric weight, self-pickup, with ticket), and the quotation price of “Double 28” level lint is at More than 14,500 yuan/ton. As textile companies are currently actively purchasing, lint transactions are in good shape.
On October 12, the mainstream purchase price of seed cotton in Hebei was 3.25-3.30 yuan/jin (clothing content rate 38%, moisture regain rate 11%), an increase of 0.1 yuan/jin from the previous day. Calculated based on the cottonseed price of 1.36 yuan/jin, lint processing cost of 600 yuan/ton, and a loss of 2%, the equivalent production cost is 13,400-13,650 yuan/ton. The rapidly rising cotton market has also made cotton companies more worried. Although local seed cotton has been harvested for more than half, the enthusiasm of cotton farmers to sell is still low. The daily purchase volume of cotton companies is small, the lint processing cycle is longer, and related expenses have also increased accordingly. Local cotton companies remain cautious about seed cotton procurement and hope that the market will stabilize.
It is reported that as textile companies have generally become more and more strict with cotton heterosexual fibers, in order to increase the competitiveness of the mainland cotton market, some cotton companies have added the process of carefully selecting “three filaments”. Local white cotton is grade 3. The sales quotation of lint cotton is above 13,700 yuan/ton. At present, cotton companies mainly focus on sales and pay close attention to market trends. Before the U.S. election is approaching, the market is full of uncertainty and business operations are based on caution. </p
