Last week (July 13-17), affected by negative factors such as the sharp correction of the Shanghai A-share index, the continuous decline in US cotton ICE prices, and the tense Sino-US trade relations, the price of Zheng cotton futures fluctuated and dropped by about 200 points. However, the current market decline has not affected the enthusiasm of enterprises to participate in reserve cotton auctions. The reserve cotton transaction rate still maintains 100%, and only the average price increase has declined, indicating that enterprises are more rational in bidding and cautiously pursuing higher prices.
However, the impact of floods and heavy rains in some cotton-producing areas in China and drought in Texas in the United States continues to ferment. Textile and apparel export data for June released by the customs last Tuesday (July 14) showed that apparel exports increased by 44.6% month-on-month, which also gave favorable support to cotton prices. The current dominant fundamental factors are still downstream consumption and weather. The market believes that although cotton prices have a long way to go, the recovery of export orders will further stimulate textile companies’ purchase demand for cotton. It is expected that the transaction rate of cotton reserves will remain high this week.
This week: Data will be released from July 13-17
China Cotton Reserve Management Limited The company has a total of 40,200 tons of cotton reserves listed, including 22,700 tons of Xinjiang cotton and 17,500 tons of real estate cotton.
From July 13 to July 17, the average transaction price of reserve cotton was 11,589 yuan/ton, an increase of 22 yuan/ton from last week; the discounted price of standard grade (3128) was 12,808 yuan / ton, down 106 yuan / ton; the average price increase is 779 yuan / ton, down 240 yuan / ton; the highest transaction price is 12,370 yuan / ton, and the lowest price is 10,780 yuan / ton. Among them, the average transaction price of Xinjiang cotton is 11,737 yuan/ton, with an average price increase of 951 yuan/ton; the average transaction price of real estate cotton is 11,396 yuan/ton, with an average price increase of 554 yuan/ton.
Cumulative: July 1-17 rounded data
China Reserve Cotton Management Co., Ltd. A total of 104,700 tons of cotton reserves have been listed, including 60,300 tons of Xinjiang cotton and 44,400 tons of real estate cotton. According to statistical data, 181 companies participated in the reserve cotton bidding and achieved transactions, including 126 textile companies, accounting for 69.6% of the total number of transactions; 55 trading companies, accounting for 30.4% of the total number of transactions. In addition, as in the past, during the bidding process for cotton reserves, many trading companies bid on behalf of textile companies.
From July 1 to July 17, the average transaction price of reserve cotton was 11,514 yuan/ton, discounted to the standard grade (3128) price of 12,825 yuan/ton, and the highest transaction price was 12,370 yuan/ton. tons, the lowest price is 10,560 yuan/ton; among which, the average transaction price of Xinjiang cotton is 11,672 yuan/ton, and the average price increase is 1,078 yuan/ton; the average transaction price of real estate cotton is 11,300 yuan/ton, and the average price increase is 638 yuan/ton.
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