Domestic cotton yarn sales improved slightly

Recently, domestic cotton yarn sales have improved slightly, domestic cotton prices have stabilized, domestic orders have increased, business start-up rates have shown signs of recovery, textile production has accelerated, and the nation’s cotton industry has seen a decline in the chain.

According to a sample survey conducted by the National Cotton Market Monitoring System, as of September 7, the average number of days of cotton inventory used by the sampled surveyed enterprises was approximately 30.4 days (including the number of cotton imported to Hong Kong), which was 11.3% lower than the average level in the past three years.

According to the relevant data, the national cotton industry stocks are about 829,800 tons, which is 15.7% lower than the average inventory in the past three years. The annual September and October is the traditional industry peak season. After half a year of de-stocking, the downstream companies will have a certain amount of demand for supplementary storage, which will promote the strengthening of cotton prices.

After the month of storage, the peak storage period may be ushered in. At present, the State Reserve's cotton stocks are only 22.7 million tons, and there are 3.6 million tons of storage capacity, which is almost half of the domestic annual production. The collection and storage of cotton prices is very strong.

In addition, according to the storage and storage price of 19,800 yuan/ton, plus the cost of capital, transportation and delivery, and other expenses, the registration cost price of ** warehouse receipts will be around 21,000 yuan/ton, which will have a stronger supportive effect on the futures price. .