Seed cotton prices fall, Zheng cotton consolidation

Futures dynamics: US cotton overnight due to good export sales data, cotton hit a two-week high, and ICE closed 1.26 cents higher in December, closing at 70.57 cents/lb. Zheng cotton 1701 opening 15020 yuan, a slight low open quickly pulled up to 15,520 yuan, after falling back to the main day, around 15,200 yuan / ton shock, closing at 15,165 yuan / ton, up 105 yuan / ton. There are 716 warehouse receipts today, effectively forecasting 192.

In terms of spot, the purchase price of hand picking cotton in Xinjiang recently fell gradually. The unstable sales price of lint was the reason for the price reduction of the company's price reduction. The price of hand picked cotton fell back to 7.4-7.4 yuan/kg (40% of the clothing points. , 13% of the water content), cottonseed prices remained at 2.4-2.55 yuan / kg, Xinjiang supervision Kupi cotton offer at 15600-16000 yuan / ton, compared to the previous offer down 300 yuan / ton, but the actual turnover is less, substantially Higher than the psychological price of textile enterprises, the capital pressure of such processing companies is still quite large, and at the same time, the increase in transportation costs is also another business headache. The current freight rate from Xinjiang to Henan is 840-850 yuan/ton, which is about 120 yuan/ton higher than before. For textile companies, automobile and rail transport are similar, and autos are more flexible. In the Mainland, processing companies in the Yellow River and Yangtze River areas generally feel that processing pressure, although the recent yarn prices have risen, the price of C32S cotton yarn index is 22,620 yuan, which is 300-400 yuan/ton higher than the previous period, but the tentative price increase of textile companies has not gotten downstream. Certainly, sales of some yarn varieties are difficult, financial pressure is high, profits are limited, and payment is slow. In terms of external yarns, Vietnamese yarns are strong, Indian yarns are not prosperous, prices are low, and the market needs to pay attention to the impact of Indian cotton and yarn on the domestic market.

Operational strategy: The operation was affected by the rise of agricultural products, Zheng cotton, but the high and low, continue to focus around the 15000-15500 yuan / ton shock, dilemma, wait and see is appropriate.