After the Dragon Boat Festival cotton market turn light El Nino impact or not to be underestimated

From the perspective of market operation, the tight supply speculation fermented by weather and inventory factors has weakened, and the consumer side has shown signs of weakening, and the impact of the Dragon Boat Festival holiday, the overall market atmosphere has weakened. From the perspective of the peripheral market, the domestic macro is still favorable, and LPR is lowered as scheduled, but it has been basically digested by the market in the early stage, and the boost ability is limited. Coupled with Federal Reserve Chairman Powell's testimony to Congress this week that the Federal Reserve may continue to raise interest rates in the coming months, the market's interest rate hike expectations have rebounded, and the latest economic data show continued cooling of employment and the economy, the market fears of recession have strengthened. From the perspective of price operation, the weekly average settlement price of Zheng cotton main contract is 16,587 yuan/ton, down 208 yuan/ton from the previous week, down 1.2%.

New orders downstream insufficient cotton mill price increases are not smooth

This month, downstream into the traditional off-season, at the beginning of the month, some textile enterprises had been due to the poor brewing down yarn prices, but the futures rebounded sharply after the market turned to wait-and-see, cotton mills have a willingness to rise with the tentative increase in cotton yarn quotation, some of the increase in 500-1000 yuan/ton, but the price is not smooth, domestic off-season downstream more difficult to bear the sharp rise in yarn prices, Weavers and traders wait-and-see sentiment is heavier, the actual transaction price rose weak, high-count combed yarn goods also began to fade, conventional varieties of goods more light.

Cotton futures shock back, spot prices stable slightly down. Due to the continuous decline in Zheng cotton week, a small number of textile prices were traded, mainly to replenish the stock. While the downstream new orders are insufficient, some cotton mills cut the price but the transaction is general, and the inventory of finished products generally increased. During the Dragon Boat Festival holiday, a small number of cotton mills choose to reduce production capacity and delay holiday time to reduce losses. The average weekly spot price of cotton yarn was 23,992 yuan/ton, up 0.1% from the previous month.

Export orders quotation has increased double the single variety is still more than the price

Since entering June, the overall market has been in a downturn, the shipment is poor, and the situation of most textile printing and dyeing enterprises is basically the same, all orders are insufficient, and the guests are relatively sensitive to the price.

Recently, the overall order is general, the order of conventional varieties thick varieties is relatively good, fixed woven varieties are still mainly to develop proofing, the actual number of orders is not large; Guests in previous years double single varieties are still many price comparison, price competition is very fierce. At present, there are more lofting quotes in the grey cloth market, and there are few actual transactions, dyeing factory orders are very poor, export orders have increased, the price is very bitter, and the price of a little amount is very tight, and it is more difficult to receive orders.