How Can Cotton Prices Get Out Of Trouble And Earn Money?

After the Spring Festival,

Accelerated decline.

On the evening of February 29th, one

The cotton merchant called to say that there is no bottom line for cotton now, and the market is miserable. What should we do with the stock?

At present, Zheng cotton futures fell to 10000 yuan / ton.

Last Friday (February 26th), Zheng cotton main contract CF1609 reported 10460 yuan / ton, until Monday (February 29th) reported 9990 yuan / ton, has successfully broken 10000 yuan mark.

This makes the market everywhere, many people believe that this year's cotton is a bottomless pit.

Spot prices also fell.

In March 1st,

The mainland warehouse delivery price 2128B level is only 12300-12400 yuan / ton, 2128C level in 12000-12200 yuan / ton, compared to the Spring Festival fell 300-400 yuan / ton.

Some cotton merchants even said "as long as someone is willing to buy, regardless of the price".

What do you mean?

No one wants to get rid of the main street? Besides Xinjiang cotton, the real estate cotton is "nobody cares and few people ask".

A 400 type of cotton business owner in Hebei said that now nearly 1000 tons of spot are afraid of smashing their hands.

In recent years, cotton prices have plummeted continuously. Under the psychology of buying up and buying down, the cotton business wait-and-see attitude is very obvious.

After the Spring Festival, why cotton prices have fallen so rapidly? The author thinks that the cotton prices are mainly affected by the following two aspects: first, the cotton enterprises in the upper reaches are anxious.

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At the beginning of this year, the central economic work conference identified five major tasks: inventory, capacity, leverage, cost reduction and compensation.

Many people in the industry believe that there is also a problem of inventory in 2016, about 10000000 tons.

Once out of the market, the impact on the market can be seen.

Therefore, after the Spring Festival, the first thing cotton enterprises should do is to sell cotton.

Two, the sale of downstream cotton yarn is still not optimistic.

According to the textile enterprises in the the Yellow River River Basin and Jiangsu and Zhejiang provinces, after the Spring Festival, the return of the textile enterprises is better than expected, but it is still not ideal. Many textile enterprises are still watching.

In addition, the price of cotton yarn in the post holiday period continued to decline. Taking the combs 32S and 40S as an example, the price fell by 100-200 yuan / ton, at 19300-19500 yuan / ton, 21800-22000 yuan / ton, and the cost of the enterprise has been hung up 400-700 yuan / ton.

Cotton has fallen to such a situation, is there any possibility of bottoming out? I think, first of all, there is a structural gap in 2016 cotton can not be ignored.

Although the textile enterprises will use their quotas to import high-quality cotton supplement after the Spring Festival, the quota of 894 thousand tons is obviously difficult to quench thirst.

Second, it is not necessarily bad to save the cotton.

At present, most cotton stores in the country are mostly cotton in 2013 and 2014, and the acquisition cost is 19800-20400 yuan / ton. Will the country come out at a super low price of less than 10000 yuan / ton? Even if it will really go out at a super low price, the biggest predicament of China's textile industry is that the cost of raw materials is too high.

Therefore, in the current market environment, we should not be too pessimistic. At this time, the more we should steady our mind and rational operation, then we can get rid of the difficult situation and earn our money.