Will cotton price decrease persist?

Will cotton price decrease persist?

China Cotton Market Weekly Report (May 30 - June 2, 2022)

This week, cotton prices continue a falling trend both at home and abroad;  domestic cotton prices continued to weaken, and the yarn after prices rose slightly weaker marginal;  polyester staple fiber pricesGo up.

1. domestic cotton prices fell oscillation

This week and part of the textile mills of afternoon cautious generally pessimistic, textile purchasing willingness co., LTD., Shanghai to return to work and production brief boost market confidence then dissipate quickly, domestic cotton prices weak rebound fatigue, continued decline as a whole. On May 30, 2022 - June 2, on behalf of the mainland standard market prices of national cotton lint index B average price 21533 yuan/ton, the previous fell 316 yuan/ton, or 1.4%. Zhengzhou Commodity Exchange main cotton futures Contract settlement price 20388 yuan/ton, The previous fell 319 yuan/ton, or 1.5%.

2.International cotton prices fell again.

This week, the federal reserve official start table, collective drop in U.S. stock and commodity markets, Texas sufficient rain to cool speculation, international cotton prices downward again were thwarted. On May 30, 2022 - June 2, The intercontinental Exchange (ICE) Cotton Futures main Contract Settlement price of 137.52 cents/pound, Previous fell 4.38 cents/pounds, or 3.1%; On behalf of imports of cotton China main port price C.I.F. International cotton index (M) average 155.37 cents/pound, Previous fell 3.91 cents/pound, or 2.5%, fold the import costs 24773 yuan/ton (calculated at 1%, with the noise and freight), previous rose 34 yuan/ton,  International cotton prices higher than domestic cotton prices 3240 yuan/ton, affected by the exchange rate rise in June, spreads to expand from last week 350 yuan/ton.

3. Domestic cotton prices continue to weaken, yarn prices firm

cotton prices declined. Pressure from inventory, southeast Asian textile market price a bit, India, Pakistan cotton yarn prices will not decrease, Vietnam, Uzbekistan yarn price is marginal decline, outside the current conventional yarn is higher than domestic yarn 3477 yuan/ton. The downturn in the domestic market is selling situation bad cloth cotton price declines accelerated. With raw materials, PTA polyester staple fiber prices continued to rise.

4. Afternoon looking

The fed shrinkage test table to open the international cotton market risk aversion. The federal reserve interest rates from 1% to 2% of the current 0.75-a far cry from the neutral interest rate, on June 1, open reduction table process has just begun, Markus stocks remain under pressure. Markus inflation of 8.1% to an all-time high the European central bank clearly put forward to consider raising interest rates in July. Cotton city, on May 30, 2022 American cotton planting progress for 68%, significantly ahead of last year's 6%. The media reported that Texas is expected to have rain in the next few weeks. Early concerns temporary relief. Southern Cotton Harvest, May 28, Brazil cotton harvest rate was 0.9%, higher than last year's 0.5%. Recent high cost to the Indian textile mills of pain to grow, spinning mill in southern India association announced the closure of its factory, caused its huge losses, and had to take the production of extreme way. Cotton terminal consumption could be slowing. The U.S. Consumer Confidence Index fell to 106.4 in May, the lowest level for almost 3 months. With high inflation continuing to impact the economy, the overseas major economies' tightening process is accelerated, the international financial market risk aversion to heat up, international cotton prices are already showing signs of weaker marginal, we released on May 6 weekly have predicted that the prelude to cotton prices could open it.

Before the Dragon Boat Festival holiday, the domestic cotton prices continued to weak. As the domestic epidemic situation has improved, the National Bureau of Statistics released by the manufacturing PMI in May was 49.6%, up 2.2% last month, but still for three consecutive months from the offline side. On June 1, the State Council executive meeting to deploy to speed up the steady economic package of effective policies and measures to be born, and microcirculation, promote return to work to get through the logistics channel reaches producing, get stuck points, improve the measures. Cotton market, up to June, Xinjiang weather across the whole Hugh is normal, the crop growing well. Along with the Xinjiang cotton ginning mill in repayment pressure continues to increase, 2021 annual cotton spot sales prices generally. Data according to the national cotton market monitoring system, May 27 - June 1, 2021 annual cotton spot sales climbed to 140000 tons, for four weeks of record for the 9 weeks, the cumulative sales progress 56.6% complete. As raw material prices downward, textile market atmosphere recovered somewhat, partial enterprise losses narrowed, enterprises follow demand due to the bad clothes, causing FangQi profit too early. According to a Chinese cotton net survey, the current textile factory orders from April to reduce or equal 87%, downstream orders according to the current situation are still not optimistic. As the Dragon Boat Festival is coming and part of the purchase and sale of spinning and weaving mill has entered the off state, market a rut. need to focus on holidays to return to work and production enterprise, is expected to domestic cotton prices continue to decline.