Textile market trend is divided

According to feedback from cotton trading companies in Jiangsu, Henan, Shandong and other places, Zheng Cotton’s main contract last week stabilized and rebounded with 17,000 yuan/ton, and the enthusiasm of cotton spinning mills and middlemen to inquire and obtain goods was significantly reduced. Except for the “Buy it Now” transaction, the transaction was unsatisfactory. In addition, the basis price sales tend to be deserted.

A pocket fabric company in Changzhou, Jiangsu stated that in addition to the increase in the sales price of Xinjiang long-staple cotton in recent days, the 2020/21 turnover of Xinjiang cotton in and out of Xinjiang has been slow to sign contracts and deliveries. It is worth noting that since late July, the transaction of reserve cotton has been relatively active, which is significantly better than the same period in 2019 and 2020. Some small and medium-sized textile enterprises that did not participate in the auction of reserve cotton or did not entrust cotton traders to directly purchase reserve cotton.

From the survey, the current cotton textile enterprises not only have relatively large differences in raw material inventory, but also have great differences in the judgment of the cotton trend from August to September. According to one opinion, the consumption recovery in the second half of the year is strong. Under the positive influence of the expected increase of new cotton prices in the 2021/22 year, the expected decline in Xinjiang cotton production and the change of monetary policy, the cotton futures are still on the upward channel, and the inflection point is currently close. It is still early, so the probability of the CF2201 contract breaking 18,000 yuan/ton is relatively high, and the operation is mainly based on bargain hunting.

Another view is more cautious or even pessimistic. It believes that the global and domestic epidemics are once again tense, ocean freight and surcharges continue to rise, and containers in the U.S. and Europe routes are extremely tight. Although domestic textile and clothing companies have relatively prosperous rankings, their profit margins are low. Even lose money and earn money. At present, the 700,000 tons of cotton import quota for sliding tax is issued in batches (valid until December 31, 2021). The cotton reserve will be carried out in an orderly manner before the end of September. The domestic cotton supply is sufficient. Therefore, the CF2201 contract may be available before and after the launch of the new cotton. 17000-18000 yuan/ton oscillation.

A trader in Henan believes that the recent heavy rain disasters and sudden outbreaks in Henan, Jiangsu, Hubei, Hunan and other places, the upgrade of prevention and control in various places has affected the order, production, transportation, and delivery of cotton spinning mills. Therefore, the cotton yarn Future support is strong, but it remains to be seen how long it can last.