July 28, 2016 domestic cotton market analysis

Release time:

2020-05-27

On July 28, the price of 3128B grade lint was 15250-15555 yuan/ton, up 16.17 from the beginning of the month. Zheng Mian 1701 contract fell sharply on the same day, closing at 14905 yuan/ton as of July 28, down 1.15 from the beginning of the month. On July 26, ICE cotton futures fell sharply. ICE's December cotton contract fell 0.4 cents, or 0.54, to 73.55 cents/pound. On July 27, all 30000 tons of reserve cotton were sold, with an average transaction price of 15201 yuan/ton and a 3128 price of 16063 yuan/ton, a record high transaction price. On July 28, the reserve cotton wheel was released in two sections with a total of 30000 tons, and the market supply was stable. Due to the sharp decline in Zheng cotton and the decline in ICE, the closing price of cotton in stock weakened on the same day, and the bargaining range of some traders widened. The current cotton market supply is still tight and the market is light. Downstream cotton yarn prices are active, with a large increase in recent years. According to network price monitoring, on July 28, the price of 21S high-end knitting pure cotton yarn was 22000-25000 yuan/ton, up 15.93 from the beginning of the month. However, corporate profits are still not ideal, the operating rate is at a low level, there is no improvement. Analyst Sun Minhua believes that Zheng Mian has experienced a rational correction after the surge, but the fundamentals have not undergone essential changes. The market supply is still tight. The overall domestic and foreign cotton supply expectations are tight, and the market still supports cotton prices. Due to the active market, Zheng cotton futures and ICE cotton have a significant adjustment momentum. Generally speaking, the current domestic cotton supply is tight, and it is expected that the future cotton will remain volatile in the near future, and the cotton market price will stabilize.

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