Cotton storage tends to be active, and import cotton prices fall by 1 cent

On February 18, the central bank reduced the deposit reserve ratio for ***, which favored domestic commodities. Later, the price of cotton rebounded further, or started a new round of weak market conditions. The key is to see the cooperation of the downstream textile market. At the moment, the textile terminal market has not recovered as a whole. The overall sales of cotton yarns of spinning mills have been weak, inventory pressure has increased, and even some small-scale spinning mills have been shut down and sold at reduced prices. Textile companies are under their own pressure and have not followed suit to supplement cotton stocks after the Spring Festival. Spot prices The rally was forced to slow down. Recently, processing companies have reported that the current deposit has a stable profit of 500-600 yuan, which is more profitable than through market sales. It is expected that the late-stage purchase and storage transactions will become more active.

Imported cotton prices in China's main port fell by 1 cent, while Egyptian long-staple cotton and American Pima cotton also fell by 1-2 cents. It is understood that last week's cotton textile companies to reduce the purchase of foreign cotton, the market demand after the international cotton prices fell last weekend, some improvement, compared with a week ago, the overall cotton prices rose slightly. In addition, China’s official delegation will sign nine US cotton purchase orders in the United States today, worth a total of US$500 million. Overall, after the Spring Festival, the demand for restocking by textile companies is gradually released. Outside cotton prices are expected to consolidate between 90-94 cents.