The Turnover Rate Of Xinjiang Cotton Has Dropped Greatly, And The Cotton Market Has Rebeled.

Entering this week, the turnover rate of Xinjiang cotton fell sharply, which affected the rebound of Zheng cotton, and the spot market was also dragged down, and market confidence was suppressed.
Data show that on February 10th and 11, the turnover rate of Xinjiang cotton was 27.33% and 18%, respectively, compared with the previous 100% weeks.
Xinjiang cotton's entry into the stock market fluctuated sharply and struck the market confidence just built. First, Zheng cotton futures are exhausted. As of yesterday (11), Zheng cotton main CF2005 contract closed at 13125 yuan / ton, the daily line formed a low opening line, intra day trading volume shrinkage, holdings reduced. Second, spot quotes are very confusing. According to feedback from ginning plants and middlemen in Shandong, Hebei and other places, the factories have not yet resumed work, and the sale of lint cotton has been withered. In the case of downstream telephone enquiries, factory quotations are more confusing, and the price difference between the same grade cotton is larger. Take grade three lint as an example. In February 12th, a factory in Dongying, Shandong, offered a quotation of 13800 yuan / ton (gross weight and carrying a ticket), while Hebei, Hengshui, Baoding and other places offered a price of 13500-13600 yuan / ton.
According to the analysis, the reasons for the fall in the turnover rate of Xinjiang cotton are: first, the quality of the cotton that some manufacturers are participating in is declining, which does not conform to the standards of storage and storage. Therefore, it is impossible to conclude the transaction. Two, cotton prices rose sharply last week, and some enterprises in Xinjiang changed their attitude towards entering the stock market.
In addition, according to a number of cotton enterprises, despite the government's notification requirements, they can resume work after February 10th, but there are still many difficulties for enterprises to really resume production.
1, traffic is not smooth, logistics stagnation. Influenced by traffic, logistics is still stagnant till now. Without logistics and goods flow, enterprises are difficult to live.
2, it is difficult for workers to return to factories. Affected by the epidemic, the control of people's flow is more stringent. Workers in the field are advised to return or require isolation for 14 days before going to work. At the same time, enterprises are also very worried. If a worker is infected, it is possible that the factory will stop production. It is better to wait for a rush to resume production.
In summary, it is expected that cotton will continue to maintain oscillation pattern in the near future, and the focus of enterprises should still pay attention to epidemic prevention and control.