Cotton Continued To Drop &Nbsp After Skyrocketing; Stockhoarmakers Suffered Heavy Losses.

According to China

Ma Wenfeng, an analyst with Beijing orient Agricultural Consulting Co. Ltd. yesterday, cotton prices have been falling this year. The current price has dropped by 20% compared with the high point, but it is still at a high level.

According to the reporter, cotton prices have risen steadily since the second half of last year. In October and November last year, the price of domestic grade 328 cotton (standard cotton) hit a record high, up 40% last year.

At that time, the price of cotton rose directly to the downstream clothing market. At the end of last year, the survey showed that the new clothing in the shopping center generally had an increase of two to 30%.

Stockhoarmakers suffered heavy losses.

Ma Wenfeng said yesterday that the continued fall in domestic cotton prices has been a great blow to cotton stockpiling.

According to the latest analysis released by the website of China Cotton Association, there are many cotton stocks in the hands of most cotton traders.

With the current cotton prices stabilized, textile enterprises inventory bottomed out, cotton enterprises actively shipped, the two sides have increased turnover.

In addition, the lower reaches of the industry are pessimistic. It is expected that orders will improve in the second half of the year.

China's reserve cotton management company recently wrote on the website of the SASAC that although the recent weather factors provided a little support for the cotton market, the possibility of the domestic cotton price running weak is still high before the textile production and marketing situation has recovered significantly.

China reserves cotton pointed out that the RMB exchange rate has even reached a record high with the US dollar, making the export environment of textile enterprises worse and worse. On the other hand, the domestic yarn price has not yet got rid of the declining channel.

As for the trend of cotton, Ma Wenfeng said yesterday that the decline in cotton prices will continue and may continue until August and September, due to insufficient domestic demand and declining export volume.