Domestic Lint Spot Prices Are Stagnant And Stable.

As businesses and banks in some parts of Xinjiang began to impose price limits on loans, the market was worried. Last week, Zheng cotton's stagflation caused a negative atmosphere for the lint spot market.

There is still a certain reserve cotton stock in the market, and the willingness of textile enterprises to purchase new cotton is still not high.

Supported by high cost and limited supply, short-term lint is expected to continue to rise steadily or overall.

But in the future, as the new cotton is on the market, lint supply will gradually increase, and the cotton price in the later stage will still fall back.

Cotton planting area continued to decline this year.

The expected price of seed cotton is relatively high, supporting the recent increase in seed cotton prices.

Up to now, the new cotton seed purchase price in the Yellow River basin has increased by 3.55-4.00 yuan / Jin, 0.05-0.10 yuan / Jin, and the cost has increased, providing good support for the lint market.

As cotton prices and cotton yields continue to decline, the cotton planting area in the mainland continued to shrink in 2016, and cotton production continued to shrink.

Because the price of seed cotton is too high, the processing enthusiasm of ginning mills is low, and the current market is low.

The volume of listing is not large, and manufacturers are not willing to sell lint too low.

According to statistics from the General Administration of Customs of China, in August 2016, China imported 69 thousand and 300 tons of cotton, a decrease of 25 thousand and 600 tons, a decrease of 26.97%, a decrease of 760 tons, or a decrease of 1.08%. In October 13th, the national development and Reform Commission announced that the cotton tariff rate quota in 2017 was 894 thousand tons, unchanged from previous years, which had little impact on the domestic market and brought support for the lint spot market.

I believe that the above good support this week cotton lint

Continue to rise, but under the pressure of the following bad profits, cotton prices will slow down this week.

This year, the reserve cotton wheel ended in September 30th. Before the end of the cotton spinning, the spinning enterprises actively stocked up, and there was a certain quantity in the hands of traders, and the stock of reserve cotton was relatively adequate. With the accumulation of cotton seed purchases in the late stage, the cotton mill was rebuilt in large areas, the supply of lint increased gradually, and the purchasing intention of textile enterprises was still low.