Textile demand is strong, cotton prices continue to rise(2)

Update:12 Mar 2021
Summary:

2. Analysis of factors affecting domestic and foreign p […]

2. Analysis of factors affecting domestic and foreign price changes
1. The reserve cotton rotation has not been started yet
According to the announcement of the reserve cotton rotation, from December 1, 2020 to March 31, 2021, if the price difference between the inside and outside cotton is less than 800 yuan/ton, the rotation will be started, but this month, the price difference between the inside and outside cotton reached 1127 yuan/ton at the lowest point. , The price difference is still higher than 800 yuan/ton, and the cotton reserve rotation has not yet started.
2. Zheng Mian Futures went down at the end of the month, and registered warehouse receipts increased significantly
In January, Zheng cotton futures rose first and then fell, falling below 10,000 yuan at the end of the month. The settlement price of the main contract CF105 at the end of the month was 14,850 yuan/ton, a decrease of 235 yuan/ton or 1.59% from the 15,085 yuan/ton at the end of the previous month. At the end of the month, there were 16,767 warehouse receipts, discounting 670,700 tons, an increase of 133,400 tons from the end of the previous month, but significantly lower than the same period last year.
3. The amount of cotton exported from Xinjiang has slightly decreased
In January 2021, a total of 406,500 tons of cotton was shipped out of Xinjiang, a decrease of 76,600 tons from the previous month. Among them, due to the sudden outbreak of new coronary pneumonia cases in many parts of the country, road control in some areas is relatively strict, and the freight rate has risen slightly.
4. The demand for orders in the textile industry has improved
The textile industry continued to improve in January, and the cotton yarn market in the textile market continued to be hot. Not only did prices rise, but sales were smooth. Downstream orders before the Spring Festival increased significantly. Enterprises increased their raw material inventory significantly before the Spring Festival, and cotton prices also maintained an upward trend.
5. The United States issued a ban on Xinjiang cotton
On January 14, the United States Customs and Border Protection stated that the United States would ban the import of all cotton and tomato products from Xinjiang, China. The ban applies to cotton yarn, clothing and textiles made from cotton grown in Xinjiang.

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