Central Storage Cotton Company Will Continue To Strengthen The Storage Management Of Reserve Cotton.

In the early July 2016,

The head office set up 6 inspection teams, headed by the head of the central storage cotton company, to carry out safety checks on the storage units in each area and supervise the storage of cotton.

The inspection teams were divided into Xi'an, Lanzhou and Fuyang areas; Tianjin area; Qingdao and Heze areas; Xuzhou,

Jiujiang and Shaoxing area, Luohe area, Wuhan, Yueyang area and other 6 areas of storage units were carried out.

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We also conducted a comprehensive check on the storage, field management, safety archives management, equipment and facilities management, and duty levels at all levels of the reserve banks, and asked all the units to carry out the management according to the safety management requirements of the central storage cotton company, strictly controlling the various links of the work process, and ensuring the safe, standardized and orderly operation of the storage of cotton reserves.

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Recent climate speculation, rainstorm floods and structural supply problems of some varieties make some investors still have a preference for agricultural products.

From the point of view of supply and demand balance, the recent increase in cotton is mainly due to the shortage of domestic supply and the sharp reduction of global stocks.

Judging from the fundamentals of international cotton, cotton output in 2016-2017 has increased, but global cotton stocks have decreased significantly.

In addition, the steady growth of cotton in the ICE period and the sharp rise in cotton prices in India have strongly supported the international cotton price.

At home, three factors support the "capricious" rise of cotton.

First of all, the output of new cotton is expected to be low due to weather factors.

Secondly, the state store cotton is out of stock, and the proportion of cotton reserves depends on the turnover ratio.

Third, the end of August of the state cotton reserve and the new cotton market will be closed for one month.

Commercial cotton stocks are in a historical position. Xinjiang's market tension with cotton is an important reason why cotton prices tend to rise and fall.

Although the State Cotton store has gradually entered the market since May, the digestion of cotton business inventories by the downstream enterprises has gradually decreased along with the rotation of State Cotton stores, but the inventory of nearly 1 million tons of commodities remains low in history, which is the basic factor leading to the strong rise in cotton prices in the near future.

In addition, with the vigorous development of Xinjiang textile enterprises, the sales of cotton yarn in the territory are considerable, and the demand of Xinjiang textile enterprises for cotton is relatively large. However, due to the large number of Xinjiang cotton pported to the mainland and the limited number of cotton reserves in the territory, the Xinjiang textile enterprises are very tight with cotton, and the abnormal price of Xinjiang cotton is higher than the cotton price in the mainland.

If the late Xinjiang cotton gap is bigger, it may also lead to the mainland cotton spot.

In addition, the demand for imported cotton yarn decreased year by year, making domestic cotton prices favorable.

However, the fact that the terminal demand is poor can not be ignored. In particular, we should pay attention to the change of terminal demand when the off-season comes.

Overall, in the context of the impact of the shortage of cotton supply factors is greater than the downstream terminal demand, and the late weather will form a larger factor of speculation, he expects cotton prices to remain strong in the shock before the new cotton market.