Market Express: Short recovery of gauze, rebound of cotton "quantity and price"

      According to feedback from several cotton processing enterprises in Aksu, Korla, Kuitun and other areas, driven by the rebound of Zheng cotton last week and the "tail up" trend in pre holiday terminal production and sales, not only did cotton prices both inside and outside Xinjiang rebound with futures fluctuations, but also the enthusiasm of cotton traders/futures companies and textile enterprises to inquire and purchase gradually increased compared to mid December. The duration of this situation is generally uncertain for cotton related enterprises, and they can only observe while shipping.

                           

      From the perspective of cotton enterprise quotations, from December 24th to 25th, the Xinjiang regulatory warehouse's "Double 28" machine picked cotton weight quotation increased to 15850-16050 yuan/ton (due to specific quality indicators, impurity content, and different storage warehouses, there may be a difference of about 100 yuan/ton); The quotation for "Double 29" public weight is 16050-16200 yuan/ton, an increase of nearly 500-700 yuan/ton from early December. For most southern Xinjiang ginning factories, based on current sales prices, machine picked cotton is already in a state of stable production and sales or slightly slightly profitable. A textile company in Jiangsu stated that this year's "double 28/double 29/double 30" public inspection resources account for a relatively high proportion, and there is no need to worry about quality. Cotton companies are more concerned about indicators such as length uniformity and consistency in fracture strength.

      Cotton transactions rebounded
      In the past week or so, cotton trading volume has been weak and rebounding. Firstly, domestic cotton trading companies/futures and spot companies have entered the market on a large scale, using various methods such as basis point prices to purchase Xinjiang cotton for the year 2023/24, and the spot market has bottomed out and rebounded; Secondly, since mid December, the market price of CF2405 contracts has remained stable at 15000-15500 yuan/ton. Some institutions and cotton related enterprises have judged that the adjustment of Zheng cotton this year has ended, and the main contracts will continue to break through important pressure levels. In addition, some textile enterprises still have restocking demand before the Spring Festival, and their willingness to purchase on dips has increased. In addition, pre holiday stocking of terminals and replenishment of winter and spring inventory by a few fabric and clothing companies have provided some support for market confidence and market sentiment. Cotton and other raw materials have briefly rebounded, but their sustainability is questionable.