Market Observation: The Spinning Market Is Not Good. It Is Expected That Cotton Prices Will Not Rebound In The Future

According to the prediction of Xinjiang Climate Center, the temperature is expected to be higher in most parts of Xinjiang in late August, with more precipitation in the west of southern and northern Xinjiang and less in other regions. From the daytime of the 24th to the daytime of the 25th, light rain (snow in high mountains) occurred in most parts of northern Xinjiang, western southern Xinjiang, northern slope of Kunlun Mountains, northern Bazhou and other places, moderate to heavy rain occurred in some parts of mountainous areas, and local rainstorm occurred in Ili River Valley. From the 26th to the 28th, there was light to light rain (snow in high mountains) in some areas of western northern Xinjiang, western southern Xinjiang, northern slope of Kunlun Mountains, northern mountainous areas of Bazhou, and moderate to heavy rain in some of the above areas.

From the 26th to the 30th, there will be a high-temperature weather process in the eastern and southern Xinjiang. There will be a precipitation process in most parts of northern Xinjiang around the 31st. It is expected that the high temperature weather in the late ten days will affect cotton (14690, -40.00, -0.27%).

According to the China Cotton Association, as of July 31, textile enterprises had 807000 tons of cotton in stock, a month on month decrease of 31000 tons and a year-on-year increase of 38500 tons. Among them, 41% of enterprises reduced cotton inventory, 26% increased, and 33% remained basically unchanged.

Intercontinental Exchange (ICE) cotton futures rose on Wednesday, boosted by the decline of the dollar and the decline in the U.S. cotton crop quality rate. The most active ICE The cotton for December delivery ended up 1.01 cents or 1.46%, and the settlement price was 70.35 cents/lb.

In the domestic market, the recent growth of new cotton is good, and the production increase is expected to be strong. In addition, the commercial inventory is still slow to be destocked, and the supply is still loose.

The downstream consumption peak season of "golden nine and silver ten" is expected to be weak. Most enterprises are waiting for new orders to be placed, and textile enterprises are making up inventory at bargain prices. However, due to poor spinning profits, the enthusiasm for starting work is not high, and the rebound of cotton prices in the future is expected to be limited.