Since the reserve cotton was released, the hot bidding situation has continued unabated. The average transaction price on the first Sunday was 16,331-16,455 yuan/ton. Among them, cotton textile companies were more active in bidding. Traders’ reserve cotton auctions were mainly based on Mainly proxy shooting.
Traders in Jiangsu, Henan and other places believe that the reasons why reserve cotton is favored by cotton textile enterprises are as follows: First, spinning cotton yarn with a count of 40S and above, reserve cotton has certain price advantage. The average transaction price by weight last week was 16,398 yuan/ton, while the quotations for Xinjiang cotton in color grades such as 41, 51, and 12 in the inland warehouses were not only very small, but also generally at 16,700-16,900 yuan/ton, which was 300-500 yuan higher than the reserve cotton transaction price. Yuan/ton; secondly, compared with the current settlement of original orders for Xinjiang cotton in the mainland’s warehouses and public inspection of real estate cotton (some batches are more than half a year away from the processing period, downgrades are not uncommon), except for the weight of the reserve cotton, it is based on the original order Re-inspection of other indicators shows that cotton spinning mills generally believe that the quality and spinnability of state-owned cotton reserves are more transparent and more credible; third, compared with July-September, Xinjiang/real estate cotton purchases require 100% cash and spot, while reserve cotton can be pledged for financing at any time , reducing the risk of a large amount of working capital being occupied; fourth, the reserve cotton supply is large and the auction time is long, the procurement of cotton spinning enterprises is more flexible and convenient, and warehousing fees, warehouse out fees and other expenses are very transparent and efficient; fifth In the past half month or so, domestic OE yarn and C21-C40S cotton yarn inquiries and transactions have continued to bottom out (the supply and demand of open-end knitted yarn in Guangdong, Jiangsu and Zhejiang markets are tight), and domestic sales orders in August/September are expected to fall in advance, so cotton spinning Factories are more enthusiastic about bidding and hoarding cotton reserves.
From the survey, it is expected that cotton trading companies and speculators will not be very enthusiastic about participating in reserve cotton auctions in late July. On the one hand, there are still a large number of cotton traders in the hands of cotton traders so far. Xinjiang cotton or bonded/customs-cleared foreign cotton resources are for sale in 2019/20 and 2020/21. The inventory is high and the capital is heavy; on the other hand, traders generally judge that the participation in the reserve cotton rotation and the transaction price will be a ” The market is “high at both ends and low in the middle”, so at present, we mainly observe and hold the currency to wait for selling, waiting for the signal to enter the market to purchase goods. </p
