Traders and rob cotton textile enterprises national cotton reserves wheel would extend a month

National cotton reserves wheel would extend a month

The recent round of cotton futures accelerating began in June 17, the accumulative total of 29 days to rise as high as 18.79%. In fact, from this year on March 1, 9645 yuan/ton, low until July 18, 16185 yuan/ton high, zheng cotton 1701 contracts has risen by 61.07%. To this, the personage inside course of study says, look from the entire annual supply and demand, this year's cotton supply tight spot.

Although have national cotton reserves restock, but due to the slow fiber inspection and outbound and traders can participate in bidding, the cotton market is still not comfortable. With cotton prices continue to rise, state reserve cotton sales floor price is rising. Store cotton, according to the data published in the July 25 to 29 (13 weeks) national cotton reserves round out the standard sales price is 14376 yuan/ton, compared with the previous week sales floor price 13609 yuan/ton increase 767 yuan/ton. Than the national cotton reserves round out the first week sales of 12021 yuan/ton price rose by nearly 20%.

A textile enterprise, insiders say cotton prices rise so fast, as the downstream textile enterprises certainly can't stand it. However, recently the state national cotton reserves has held a meeting decided to the relevant departments, national cotton reserves will round out a month, the expected national cotton reserves increase round out the amount of cotton textile enterprise, is a welcome message.

Traders take goods is not soft

Recently due to the lack of cotton, hubei, hunan, shandong, hebei, zhejiang, fujian, jiangsu, guangdong and other places of the nearly 150 cotton textile enterprises in the form of a telephone, a petition to the Chinese cotton textile industry association (hereinafter referred to as the cotton industry coordinating) reflect the national cotton reserves on the existing problems, and Suggestions and hope this issue related departments, maintain the normal production of cotton textile enterprise.

To this end, the cotton lines association organized a symposium, cotton textile enterprise at the meeting, said an official with the relevant departments for national cotton reserves, believe that in the not long time can have some new measures. Since its launch on May 3, national cotton reserves, round already in week 13, for now, the contradiction between supply and demand of cotton market does not seem to ease, cotton prices remain high.

According to reporter understanding, zheng cotton 1701 contracts rose more than 60% this year, global cotton spot price is higher. National cotton reserves on the cumulative volume of 63000 tons last year and little sell-through rate compared to the national cotton reserves this year to clinch a deal the main reason for the "hot" in addition to put in the rules more "ground", more important is the current market there is a big gap cotton, there will be a market where there is demand.

"International cotton production, the price is rising, also face domestic cotton production, global cotton supply and demand gap, the market is bullish expectations, strong state reserve cotton auctions become the main factor to adjust the current domestic cotton. If the cotton prices continue to rise, will drive the domestic cotton prices." Agricultural products (000061, shares) set for network research director Lin Guofa accept it

As cotton prices continue to rise, however, also has the market sources, circulation inventories increased significantly, some venture enterprises even use inventory cash pledge to continue to purchase cotton, cotton for cotton prices leverage of benefits. Industry insiders worry, this kind of behavior, if verified, one thousand cotton price volatility, or cause such traders rushed to shipment, resulting in cotton prices plunge.

"The current cotton price volatility does not lead to temporarily store cotton traders appear trample ship type, on the one hand, is the social inventory is not much more special, according to the cotton before data information network, social inventory around 800000 tons. Now real and practical new cotton volume may also want to the mid to late October. So, 800000 tons of inventory does not exist too much social pressure. So, now little chance of cotton prices fell sharply." Huarui information analyst LiZhenHua accept

In addition, although the domestic situation of cotton market appeared in short supply, prices rose slightly, but the change is not completely formed by market forces, are more affected by some artificial rules. Among them, the national cotton reserves supply and qualification of the purchasers as are the two major focus. LiZhenHua pointed out.

According to the textile business insiders said when accepting a reporter to interview, national cotton reserves now daily supply basic between 20000 ~ 30000 tons, and the rules published before there is a gap and the real demand of textile enterprises.

From buying, traders trading volume with cotton textile enterprise purchases, compete, compared with the capital strength of the traders, rebuilding the textile entity enterprises, should not only face the production of raw materials, operation management, tax and fees, and struggling to cope with the loan interest payments. From the actual situation, traders are a large number of procurement and partial sales, to some extent alleviate some of the financial difficulties of small and medium-sized enterprises (smes), but objectively formed with FangQi increased prices for resources, and obtain more profits space.

At the same time, it also brought the already insufficient supply more pressure. In addition, according to the survey, there are traders had already started in the domestic market before the national cotton reserves into purchasing stock up, wait for benefit.

Store policy later decide the price

In the cotton industry coordinating point of view, the main contradiction of the market at present is cotton supply shortage, lead to not enough, the resulting cotton prices. We have learned, zhengzhou cotton prices hit on July 25, 15440 yuan/ton, than the beginning of April rose by nearly 5000 yuan per ton, zhuo and the national average price 14927 yuan/ton, cotton than at the beginning of April rose by 2967 yuan.

Due to the rapidly rising cotton prices in futures market spot, but downstream transmission difficulties, harm the textile corporate entities. Insiders said the textile enterprise and cotton spot prices rose too fast, cause each link "a rising tide lifts all boats", bring a lot of pressure. In addition, cotton supply can't satisfy the demand of a company or even the whole industry, affecting the normal production of the enterprise.

"Trust management will not ignore corporate entities, but even to expect at the grass-roots level decision will take some time. As to whether more efforts to throw cotton storage depends on the scale and the strength of the textile enterprises of cotton prices rise, if late cotton prices continue to rise, do not rule out intensify cast store, after all the rest of the number of state reserve cotton and 10 million tons." Yongan futures Ren Xinpu accept, vice President of the institute

In addition, the country limits the import of this year, through the store to make up for the market demand, it should have been thrown in March store, but for various reasons delayed until may, it is the two months time to run out in the spot market of cotton. Since then, the textile enterprises, finally to the national cotton reserves, but with the new gauge public prosecutor. In April, according to the national development and reform commission, ministry of finance issued announcement, round out the national cotton reserves of organized by China fiber inspection bureau of quality and weight determined comprehensively.

It is understood that due to the public prosecutor ratio from 30% to 100% in the past, has been on the amount of public prosecutor, public prosecutor is to keep pace with national cotton reserves quantity was a key reason for less.

"For now whether heavy or prolonged storage, management's attitude is very clear, actually on the increase the daily reserves. Inspection aspect exists the ceiling, but public prosecutor this has done is very strong, so to speak." LiZhenHua tell

In addition, for the industry calls for, in the face of opportunity "to stock", hopes to give full consideration to the actual situation, the country will be the national cotton reserves on the postponed to September or October, to solve the difficulties of FangQi tension cotton. LiZhenHua said about it, is another kind of state reserve cotton had a non-committal, can be read as don't want to keep the price down too much.

The personage inside course of study says, according to the demand now, if August stop storage, indeed there may be two month window period, if prolonged storage, then the window period is basically can meet the market demand, but if you do not extend, this window period of cotton supply is very problematic, meanwhile the crop listed also need a certain amount of time.