Cotton Prices Are Weak And Down Trend.

Recently,

The price is weak and down trend, but the market news has been continuous in recent days.

Differences arise.

Some people think that reserves

After the landing, cotton prices have bottomed out.

However, the author believes that at present, the uplink of cotton prices is still short of support, and the pattern of continuing to be weak in the short term is hard to change. The reasons are as follows:

First, the shock of futures price weakness has not yet brought explicit guidelines to the lint spot market.

With the popularity of the bulk commodity market, the US cotton export sales report was strong, and the US cotton prices rose last week.

But the domestic market demand was weak. Last week, Zheng cotton prices fell stagflation, and the shock of Zheng cotton futures weakened.

Second, the rumor of reserve cotton rounds is still hot, and the spot price of lint goes down.

The recent reserve cotton rotation is still the main negative factor in the market. Because rumors began to roll out in mid March or early April, the downstream textile enterprises are not in a hurry to purchase large quantities. Even if the replenishment Bank continues to adopt the way of buying and selling with small quantities or lots of batches, the sales pressure of cotton enterprises will rise, and many enterprises with sales promotion ideas will curb the lint market.

Third, the export of textiles and clothing is poor, and the export situation is worrying.

According to the latest statistics of the General Administration of Customs of China, in February 2016, the export volume of textiles and clothing was 15 billion 658 million US dollars, down 35.11%, down 27.76% from the same period last year.

Among them, exports of textiles (including textile yarns, fabrics and articles) amounted to US $6 billion 83 million, down 27.56% compared to the same period last year. Exports of garments (including garments and accessories) were US $9 billion 575 million, down 27.89% from the same period last year.

The sharp decline in export volume of textiles and clothing has forced market participants to worry about the export situation of textiles in 2016.

At present, the purchase and sale of seed cotton has entered the late stage, there are not many seed cotton sources left in the market, and the cotton planting in the new year is expected to be low. Cotton growers keep up with the price of seed cotton, and the processing profit of the ginning mill is very small, and the overall start-up rate is not high.

To sum up, the market is full of profits. It is expected that the short-term lint spot market will still not improve significantly or will continue to operate in a stable and weak position.