Inspired by various preferential policies for textile enterprises in Xinjiang by the country and the Xinjiang Uygur Autonomous Region, textile enterprises in Wusu City, Xinjiang are currently working at full capacity to produce overtime, and yarn is continuously supplied to cotton spinning enterprises in Guangzhou, Fujian, Jiangsu, and Jiangxi.
With the improvement of the cotton yarn market and high customer demand, the company plans to continue to carry out technological transformation and continuously improve product quality through advanced production processes. Relevant reporters saw various production lines operating at full capacity in the spinning workshop of Changmao Textile Co., Ltd. in Wusu City, Xinjiang, and workers were working in an orderly manner at their respective positions. In the past two years, the country and the autonomous region have issued a policy. Cotton prices in Xinjiang have continued to rise this year, and cotton farmers have benefited. The textile industry has faced the phenomenon of “the cotton yarn market does not support the rise in cotton prices, and production costs have inverted.” Enterprises strive to take active measures to reduce risks, and at the same time By strengthening internal management and stabilizing product quality, product production and sales are currently booming. So far, the company’s sales revenue has reached 110 million yuan.
In terms of futures, the Zheng cotton 1705 contract showed a downward trend after a sharp rebound on Monday. Especially on December 2, Zheng cotton suffered a sharp setback and closed at 15,670 yuan/ton, down 405 yuan/ton from the previous trading day’s settlement price. ICE cotton futures this week, the market is on the sidelines, mainly fluctuating within a narrow range, with cotton futures falling by about 0.3% during the week. Overall, Zheng cotton and ICE cotton futures are running weak this week.
The picking of new cotton is coming to an end, with the year-on-year progress declining and sales rising year-on-year. According to survey data from the National Cotton Market Monitoring System on 1,837 farmers in 87 counties and cities in 14 provinces, as of December 2, the national new cotton picking progress was 97.9%, a year-on-year decrease of 1.3 percentage points, and a decrease of 0.1 percentage points from the average of the past four years. , of which the picking progress in Xinjiang was 98.3%; the national delivery rate was 88.3%, a year-on-year increase of 1.6 percentage points, and an increase of 2.6 percentage points from the average of the past four years, of which the delivery progress in Xinjiang was 98.2%.
Xinjiang cotton has been shipped to the mainland this week, and market supply has improved. Downstream cotton yarn prices have shown a slight recovery. According to price monitoring, as of December 2, the average quotation of 21S high-quality ring-spun pure cotton single yarn for high-end knitting was 23,137.50 yuan/ton, an increase of 1.20% from the beginning of the week. Recently, the price of cotton yarn has increased significantly due to the large increase in the price of foreign yarn. The international competitiveness has been continuously enhanced. At the same time, it has been supported by the cost of raw materials, and the price has recovered.
The transaction price of cottonseed (12-13% moisture) in Kuitun, Wusu, Shawan and other places is about 2.62-2.65 yuan/kg. Although the quotation price of cottonseed (with moisture content within 12% and low impurities) in some ginners reaches 2.70 yuan/kg , but oil mills, linters mills and mainland middlemen rarely take delivery of goods. The transaction price of cotton seeds in East Xinjiang cotton areas such as Hami and Tuquanfan is 2.85-2.88 yuan/kg, which is far ahead of other cotton areas. Due to strong expectations for the rise in cotton meal, cotton oil and cotton by-products, cotton companies in Xinjiang are not willing to ship goods below 2.65 yuan/kg, while oil mills and linters believe that the profits of oil mills have dropped significantly, and cottonseed prices Already at a high level, acquisitions have been sporadic.
In the past two days, the disk price of the CF1705 contract fell below 16200, 16000 and even 15800, with the center of gravity oscillating downwards. The enthusiasm for futures hedging among cotton-related enterprises in Xinjiang continued to cool down. On the one hand, after deducting transportation costs, 6 months of financial expenses, warehousing, insurance and other expenses in the mainland warehouse, and delivering at the market price, the actual income is lower than the spot sales of the stations in Xinjiang; on the other hand, the cotton enterprises in Xinjiang faced from January to March The pressure on loan repayment and repayment is relatively high, and the hedging needs to be delivered in May, which takes up funds for a long time for some ginners.
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