Internal and external Zheng cotton rebound short-lived .

Internal and external Zheng cotton rebound short-lived.

Recently, Zheng main cotton contract hit a sharp decline after the early 14360 gap bit short-lived rally. Chinese cotton price index fell in early. Until the end of April, the domestic business inventories cotton average cost of 14,429 yuan / ton, higher than the same month the average price of Chinese cotton price index of 325 yuan / ton. Cotton and selling price upside in April, up to 52% of the enterprises in the state of selling at a loss, 24% of enterprises barely capital preservation, 18% of corporate profits in the 100-200 yuan / ton, only 6% of the corporate profits of more than 300 yuan / ton. A domestic perspective, the spot price of the domestic cotton mills continue to decline to price adjustment exhausted. With the falling of the price of cotton,tpp問題点, the cotton mill spinning the manufacturing cost is indeed in decline, but the the gauze decline greater and faster corporate profits growth instead decline. The author learned from Henan the Shangqiu some large cotton enterprises, because of the psychological impact of generally bullish in early Spring Festival, some the enterprise small amount of inventory of some cotton, but with the drop in prices, exacerbated the market bearish sentiment. Fair before some enterprises generally bullish on the market outlook, the 14800 near many enterprises have started to increase inventory, the enterprises generally increase in the cost of inventories, coupled with the repayment pressures approaching, making short-term sales increase, and also accelerate the decline in prices. In addition, the author from Hebei and Jiangsu learned to plant cotton prices in the local real estate has dropped to 14100-14300 yuan / ton, basically reduced to the cotton mills acceptable price. 229 cotton delivery price dropped to 14,000 yuan / ton from 14,100 yuan / ton, the lowest adjusted to 13,800 yuan / ton. Due to falling profits, the cotton enterprises to lower inventory levels, the domestic cotton enterprise commercial stocks totaled 1.97 million tons in April. Import and export, export progress, the overall utilization of the whole of China's textile quotas in 2006 I am afraid that is lower than 80%, the inversion phenomenon is obvious. So, although the recent international spot price continued to rise, the U.S. Department of Agriculture on Chinese consumption forecast to remain high, but it does not affect the domestic cotton prices unilateral. In addition, due to the short length of imported cotton fiber, the linter high and long-term quality, Xinjiang is still the mainstream of the domestic consumption of raw materials, which directly affects the quota usage. The international community, it is learned that, even though China and Brazil have reached an agreement on the textile issue, the Brazilian textile enterprises are not satisfied. Brazil's textile industry representatives held a meeting a few days ago, hopes to receive up to 300% of the additional tax rate on textile imports from China (preliminary agreement reached that ended in 2008, a year of control of its textile export growth rate of about 9%). In addition, the recent news that the European brewing handicapping of the eight categories of textile. The newly appointed Director of the European Commission Directorate General for Trade textiles at early warning, said the eight categories of textile products in China has reached 100% -400% growth at the beginning of this year. However, from our authoritative statistics, the Class 8 product exports to the EU in 2006 as a whole to maintain steady growth, and only about 60% of the increase in individual categories. China and Central Europe, the Sino-US textile agreement, CMB agreement coverage is very broad, covering 8 categories (silk, chemical fiber, synthetic fiber cloth, velvet, knitted fabrics, pullovers, jackets and embroidery) 70 species, accounting for about 60 percent of Chinese exports of textiles to the Brazilian kind. The China-EU agreement is less than 30% of the share of textile exports to the EU accounted for 45.8% of the Sino-US agreement. The textile situation can not be warming, the domestic cotton prices worse. In summary, the domestic market by the upstream supply is growing, difficult to start the obvious impact on downstream demand, coupled with the threshold for bank loans also increased, enterprises generally lack confidence in the outlook for cotton. China Cotton Information Network data show that 37% of the cotton enterprises look flat, 24% cotton enterprises bullish,Home & Garden, bearish 15% cotton enterprises, while 24% of the cotton enterprises that says no. I believe that the recent upward price of cotton will continue to be subject to greater pressure.