Announcement Of One Month Extension Of National Cotton Storage

A few days ago, the topic of the national cotton store that concerns the industry is warming up again.

According to the recent stage cotton Changes in supply and demand and market situation, in order to ensure the supply of cotton market and meet the needs of textile enterprises for processing cotton, the national development and Reform Commission and the Ministry of Finance jointly announced the extension of the reserve cotton rotation time. It was announced that the deadline for sale of the national cotton reserves in 2015/2016 was extended from August 31, 2016 to 30 in September 2016.

In addition, the announcement also made it clear that the total output of the national cotton reserves in the current year will not be limited to 2 million tons, and the actual number of transactions will eventually prevail.

This news is for cotton. futures prices It has a direct impact.

Insiders pointed out that in the event of dumping or volume expectations, the average price of the national cotton store is expected to stop rising and stabilize, and continuous action can be suppressed. Over the same period, domestic cotton spot prices also fell. Among them, Zheng cotton's main contract volume was down, and market speculation gradually cooled.

According to the general expectation of textile enterprises, if the round is not postponed, then, under the anticipation of insufficient market supply, the enthusiasm of the enterprises will be high and the cotton prices will be affected by high pressure. Even if the downstream enterprises have reduced production, they will have to "reluctantly" purchase under the drive of ensuring the normal production purpose.

Now, when the storage time is postponed, the purchase of cotton by the downstream factories tends to be "calm", and the enthusiasm of bidding is also weakened.

It is understood that every year from May to August, the supply of cotton is in the "black and blue" period. The growth of new cotton and the digestion of old cotton make the market's cotton supply and demand mismatch. The demand of downstream cotton textile enterprises is mainly dependent on national cotton storage.

Entering the August, with the news of dumping and storage postponed for a month, the short term domestic cotton market will maintain a weak pattern, but the downlink space is also limited.

The industry pointed out that the delayed delivery of national cotton reserves is a good news for the cotton spinning enterprises. On the one hand, this policy can provide a policy guarantee for downstream enterprises to maintain basic cotton use and play a stabilizing role in the market. On the other hand, from the perspective of state regulation, it is also conducive to cracking down on the frenzied speculation behavior of Cotton Traders in the early stage, and further promoting the adjustment of domestic cotton flower trading market to a stable and healthy atmosphere.

Although the national cotton reserve postponed to downstream enterprises is a good news, but some of the larger inventory. Cotton enterprises It will be under pressure. It is understood that since May this year, the State Cotton store has been out of the market, the mood of chasing national cotton stores has been rising, the spot of cotton enterprises has been neglected, and the slow sales rate has risen sharply, which has further aggravated the inventory burden of enterprises.