Why Is Cotton Burning "Hot"?

Since September 3rd, the daily turnover rate of cotton reserves has been over 90% (three trading days 100%), and the average daily price of the reserve Xinjiang cotton has risen from 11740 yuan / ton to 12241 yuan / ton, which is echoed with the spot price volume of Xinjiang hand picked cotton in 2018/19.

Some institutions, cotton business analysis, along with zhengmian main contract CF2001 continued in the vicinity of 13000 yuan / ton, the 2019/20 seed cotton purchase price is higher than the parties expect (except cotton farmers) and "drop quasi + directional drop quasi" support the real economy and other good, 9 months later cotton storage turnover rate still high.

Why is the reserve cotton favored by traders and cotton textile enterprises? First, part of the raw material inventory of cotton enterprises is low, so it is urgent to replenishment. From the survey, the "golden nine silver ten" has brought the recovery rate of small and medium-sized cotton mills and weaving enterprises up (especially domestic sales orders, especially cotton fabrics); two, according to the current cotton spinning price, the profit of spinning is relatively considerable, and the enthusiasm for starting is relatively high; three, the reserve price of Xinjiang cotton is still lower than that of the inland bank 3128/3129 grade Xinjiang machine picked cotton, 400-500 yuan / ton, and the cost advantage appears; four, the inspection of cotton packing bags and the quality guarantee; five, the auction reserve cotton pledge financing is more efficient and convenient, and it can solve the problem of cash flow in cotton textile enterprises in stages.