After a deep decline in the early stage, Zheng Cotton finally ushered in a long-awaited rebound. The main contract of Zheng Cotton once regained the 17,500 yuan/ton mark. Due to the lack of cotton spot trading volume and the cooperation of ICE external market, the strength and amplitude of Zheng Cotton’s rebound were affected by Larger restrictions, currently consolidating briefly in the 17,000-17,500 yuan/ton range.
Cotton traders in Jiangsu, Shandong and other places have reported that even though the price of the Zheng cotton CF2209 contract has continued to plummet, and traders have placed a large number of orders and increased basis price orders, cotton textile companies and middlemen have not concentrated on inquiry and restocking. Some small and medium-sized cotton companies have not changed their strategy of buying as they are used and purchasing on demand, which is surprising. It is understood that Zheng cotton contracts have fallen sharply since mid-June, and most traders and futures companies have increased their basis spreads. The decline in spot prices has obviously lagged behind futures, and traders’ profits from “arbitrage” operations have increased.
In the past half month, Zheng Cotton has dropped by nearly 4,000 points, resulting in a significant narrowing of the price difference between cotton and substitutes such as viscose staple fiber and polyester staple fiber. In addition, orders for medium-thick fabrics such as polyester-cotton, cotton-viscose, and polyester-viscose in the autumn and winter of 2022 It has entered the final stage, and some cotton spinning mills may adopt the operation of “reducing chemical fibers and increasing cotton” in terms of raw materials.
Judging from the survey, from June 28 to 29, the middle prices of 1.5D*38mm viscose staple fiber and 1.4D*38mm polyester staple fiber in Jiangsu, Zhejiang, Guangdong and other markets were 15,390 yuan/ton and 8,460 yuan/ton respectively, which is different from the current price. The price differences of 3128B in Xinjiang’s regulatory warehouses are approximately 2,600 yuan/ton and 9,540 yuan/ton respectively. The price difference between 1.4D*38mm and 3128B cotton has narrowed by nearly 6,000 yuan/ton compared with April and May. A medium-sized textile company in Nanyang, Henan said that recently some weaving and fabric companies have received orders for sheets, quilt covers, towels, etc. from students (including middle schools and universities). Cotton spinning mills reduce the output of blended yarns and chemical fiber yarns, and instead expand the production of OE yarns and cotton yarns below C32.
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