SunSirs--China Commodity Data Group

Sign In

Join Now

Home > Commodity News > News Detail
Commodity News
SunSirs: Zhengzhou Cotton Futures Rises, Cotton Spot in the Chinese Market Rebounds with the Rise
June 28 2021 08:26:02SunSirs(Linda)

1.  Price quotes

The cotton market rose all the way last week. On the 25th, the price of 3128B lint was around 16,126 yuan/ton, up 1.51% month-on-month and 35.12% year-on-year.

2. Market analysis

Domestic: The cotton futures market rose last week. After a change from the previous downturn, the spot market followed the futures and the market rose. On the 25th, China's cotton price index 3128B level was 16087 yuan/ton, an increase of 218 yuan/ton from the previous month, or 1.37%. Zhengzhou Cotton’s main contract price was 15,950 yuan/ton on the 25th, and last Friday’s settlement price was 15,530 yuan/ton, an increase of 420 yuan/ton, or 2.7%.

At the end of May, the country’s total cotton turnover inventory was about 2,689,400 tons, a month-on-month decrease of 540,300 tons. The decline was larger than last month, and was lower than 158,900 tons in the same period last year. The mainland commodity cotton turnover inventory was 719,300 tons, a decrease of 37,600 tons from the previous month. From January to May of 2021, the imports amounted to 1.457 million tons, a year-on-year increase of 72.4%; imports amounted to US$2.5 billion, an increase of 73.1%. In addition, imports of cotton yarn, a substitute for cotton, were 975,000 tons, an increase of 35.8%.

International: The USDA report shows that on June 11-17, 2021, the net amount of upland cotton in the United States in 2020/21 will be 16,900 tons, a decrease of 33% from the previous week and a decrease of 48% from the average of the previous four weeks. Shipment 46,720 Tons, minus 32%. This week, the market was worried that tropical storms would bring losses to the American Delta and the drop in the US dollar index boosted cotton prices. The December ICE futures contract on the 24th was 86.73 cents, up 1.55 cents from last week.

3. Downstream industry chain

In the market, summer is the traditional textile off-season. Although the textile market has begun to enter the traditional off-season, overall sales are relatively smooth. The off-season characteristics are not obvious. The cotton yarn market is fading, but the yarn mills have not been significantly accumulated. The rise of Zheng cotton and cotton yarn futures and the low inventory of yarn mills have supported the continued stability of yarn prices. Textile companies have maintained a high operating rate, and some textile companies' orders have been scheduled to July. Poor textile export data in May will cause downstream inventories to accumulate, which is not conducive to cotton prices. The rise in cotton prices has made cotton enterprises active in sales, and textile enterprises have declined in purchasing enthusiasm. They are cautious and focus on small-volume purchases. It is expected that they will fluctuate in the short term in the future.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

8 Industries
Energy
Chemical
Rubber & Plastics
Textile
Non-ferrous Metals
Steel
Building Materials
Agricultural & Sideline Products