Cotton Sales Prices Will Remain High And Stable Mode.

Despite the slight increase in resources in the first two trading days, the paction price remained at a high price level for tenth weeks. Especially after the futures market was lowered in July 5th, the auction of cotton reserves was still hot, and its selling price of the national reserve cotton resources in the mainland spot market continued to run at a high price.

At present, the spot market is short of new flower spot, and the circulation is mainly for the national cotton stored by the traders. Therefore, the late cotton market is greatly influenced by the domestic round out policy and the foreign spot market. In the face of the high price cotton era, the textile enterprises have sighed. Some weaker enterprises are ready to cut production or even stop production to tide over the difficult period.

It is understood that the reason why the spot traders did not fall is as follows:

First, the market.

Mainly from the national cotton auction market, national cotton auction is quite fierce, paction prices continue to be at a high level, so the price did not make a big adjustment.

Two, it is difficult to get the listed resources out of stock for a short time. The inventory of raw materials in textile enterprises is generally at a low level, and it is strong at the high spot market with the use of buying.

Facing the local market

Quotes, textile enterprises said that in order to maintain normal production reluctantly accepted, although the cotton yarn has risen, but the overall lifting rate is lower than the rise of cotton, cotton yarn sales pressure gradually increased, some weak textile enterprises began to reduce production, stop production, or reduce cotton use ratio to avoid the risk of high cotton price era.

The adjustment involves the relevant departments of the state, the coordination is more difficult, the short-term market support ability is stronger; the current foreign cotton sales price is strong, especially the India cotton price further goes up, the mutual linkage stimulates the spot market to maintain the high price level.