On the 6th, the price of 3128B lint was around RMB 16,575/ton, up 2.71% from the beginning of the month and 37.19% year-on-year.
On the 5th, dumping and storage landed, Zhengzhou cotton continued to rise. From July 5th to September 30th, 600,000 tons of central reserve cotton will be released, and the reserve will once again inject new profit space for spinning medium and low-count yarn enterprises. On July 5, the reserve cotton wheel sold 9,542.299 tons of sales resources, and the actual transaction was 9,542.299 tons, with a transaction rate of 100%. The average transaction price was RMB 16,400/ton, which was discounted to RMB 3,128 at RMB 17,718/ton. The average transaction price of Xinjiang cotton is 16,510 yuan/ton, the price of Xinjiang cotton is 3128 yuan/ton, and the average price increase of Xinjiang cotton is 2,421 yuan/ton. The average transaction price of real estate cotton is 16,226 yuan/ton, the price of real estate cotton is 3128 yuan/ton, 17396 yuan/ton, and the average price increase of real estate cotton is 1895 yuan/ton.
The 5th was the first day when the reserve cotton was put on the market. The quantity and quality put on the market were not enough to pose a threat to spot sales. The quotations of cotton companies went up along with the futures, and some textile companies took advantage of the low price and made appropriate purchases. Zhengzhou’s main cotton contract settled at RMB 15,890/ton at the beginning of July, and settled at RMB 16,560/ton on the 6th, up 670 RMB/ton.
The sales of pure cotton yarns have improved. Cotton yarn futures have soared and the transactions have improved. Some merchants have raised yarn prices ranging from 200-300 yuan/ton. The downstream cotton yarn start-up maintains a high position, and the short-term policy is implemented. Boosted by the high cotton yarn start-up position, it is expected that cotton prices will run strongly in the short term. In the long run, due to the expected decline in cotton production in Xinjiang and the impact of extreme weather in the United States, cotton prices are expected to continue to rise.