Long-staple Cotton: Can We Guarantee "Endurance"

Long-staple cotton is just around the corner this week. On April 27th, Aksu Awati ginner factory continued to increase the ex-factory price of long-staple cotton. The ex-factory prices of Class 137 and Class 237 reached 28,500 yuan/ton and 27,400 yuan/ton respectively, up by 200 yuan/ton from the previous week. “Not only do we increase prices, many other companies are also rising.” The person in charge of the plant said that most ginning factories this week offer 137 grades 28300-28500 yuan/ton.

"It's not that we don't want to buy it, but the ginning factory does not plan to sell it." A cotton trader in the Mainland said that Aksu ginning mills have been making bad quotations since April and have always exceeded their ability to bear. "I think it's going to rise. How high is it? Maybe beyond imagination." Xinjiang long-staple cotton is just around the corner and it makes the heart of a friend who is a long-staple cotton supplier in Shandong uneasy. He said that many companies in the Mainland have started to increase their prices in the past few days. For example, on April 28th, the quotation of 137, 237 and 337 grade 1 cotton merchants in Jinan, Shandong Province were 28,600 yuan/ton, 27,800 yuan/ton and 26,500 yuan/ton respectively. The cotton trader has more than 1,700 tons of inventory, sales pressure is not small, but also intends to increase prices. Reasons: 1. Xinjiang generally rises, and long-staple cotton in the Mainland is bound to “rise in height”. 2, ** to force, April 20-24 Zheng cotton main 1509 contract rose 110 yuan / ton, to April 27 is still rising, the price center of gravity has been in the 13100-13500 yuan / ton, to bring good benefits to the entire market support.

In addition, the recent cotton yarn "Spring Breeze noodles". April 27-28, Shandong Binzhou, Texas combed 60s price 32,000 yuan / ton, Jiangsu Yancheng a textile company to Australian cotton, US cotton as the main distribution of combed compact spinning 40s price 31500-32000 yuan / ton, Hebei Xingtai The prices of combed 50s and 60s reached 29,500 yuan/ton and 3,1500 yuan/ton respectively. More than 40s high combed yarn is popular, the basic supply in short supply. Entering the real peak season of China's textile industry in late April is only coming, especially in the high-yield yarn. First, sales have improved markedly. Second, prices of some products have been slightly increased. In particular, long-staple cotton is the main cotton yarn, such as a textile company in Jiangsu, combing 80s100% long-staple cotton price 56600 yuan / ton, up 600 yuan / ton from last Friday. The person in charge of the plant said that there has been an upward trend in orders for long-staple cotton yarn and the demand for long-staple cotton has increased significantly. He is also looking for long-staple cotton everywhere.

Up till now, there are still many bullish factors for long-staple cotton, which is also the reason that supports many companies and cotton traders. It is also due to some other factors: 1. Production shrinks. First, the Australian cotton production cuts. According to the data, the area of ​​Australian cotton in the current year is 210,000 hectares, and the output is expected to be 470,000 tons, which is 46.9% lower than the previous year's 885,000 tons. This is also the reason why after the Spring Festival this year, the port of Macao “has hard to get a ticket”. Second, Egypt cuts production. In 2014/15, Egypt produced cotton varieties with the specialty of cotton, long-staple cotton, and short-staple cotton. This year's Egyptian cotton export volume is expected to be 150,000 bales, and it is expected to reduce to a new low of 130,000 bales in 2015/16, a decrease of 20,000 bales or 13% from the same period of last year. 3, China's reduction in supply this year.

However, the combination of numerous bullish factors will ensure that long-staple cotton does not endure? Or the old saying goes: When things reach the extreme, they will decline.