Judging from this week's data, due to the stay-at-home reasons in some provinces, the downstream market and logistics of cotton have been blocked to varying degrees. In addition, textile and apparel exports also fell in August, resulting in a sharp decline in ICE cotton prices, indicating that domestic cotton prices continued to fall. The following chart shows that from this week to the 9th, the average price of the national cotton price B index, which represents the market price of standard lint cotton in the mainland, was 15852 yuan / ton, down 130 yuan / ton from the previous week. The average settlement price of the main contract of Zhengmian futures was 14455 yuan / ton, down 417 yuan / ton from the previous week.
Compared with China, the process of new cotton spitting in the United States has accelerated. Due to high temperature weather, the pressure on global cotton supply has increased. Combined with the continued downward trend in crude oil prices, international cotton prices have consolidated after a sharp decline, with average prices significantly lower than in the previous week. From this week to the 9th, the average settlement price of the main contract of the US Intercontinental Exchange Cotton Futures (ICE) was 103 cents /lb, down 7.82 cents/lb from the previous week; The international cotton index (M), which represents the average cif prices of cotton imported from Major Chinese ports, averaged 123.78 cents/lb, down 10.75 cents/lb or 8.0% from the previous week. The international cotton price is 4535 yuan / ton higher than the domestic cotton price, and the price difference is 1562 yuan / ton narrower than the previous week.
At present, cotton in the mainland domestic market has been scaled, the average price is 6-7 yuan / kg, but cotton farmers are generally reluctant to sell, waiting for the price to rise. Xinjiang cotton is in the tufting period and is expected to start picking in mid-to-late September. Some parts of southern Xinjiang released the pre-sale price of hand-picked cotton, which was quoted at about 7 yuan / kg. Judging from the current market situation, textile and downstream enterprises have resumed a small number of production lines, and orders just needed in winter have been issued. In summary, the domestic demand situation for cotton is still relatively severe, and as the cotton harvest period approaches, the price of cotton in Xinjiang has attracted much attention. Remind the majority of cotton farmers that before weighing a large number of people, it is expected that domestic cotton prices need to remain cautious.
Source: China Cotton Network