The Reserve Cotton Has Passed The "Dangerous Period" And Will Not Reproduce The "Roller Coaster".

With the 2016/2017 cotton reserves coming out, the paction price, the number of pactions and the number of filming have become a hot topic in the industry.

A basic consensus is formed in the communication with some responsible persons in cotton and cotton management enterprises.

The state is carrying out the market operation of cotton, the subsidy policy of target price and the rotation of cotton reserves, which not only achieves the "de Stocking" of cotton resources, but also guarantees the effective supply of cotton business and textile enterprises.

More than two years' practice has greatly eliminated the demand contradiction caused by the supply of resources in the cotton market, and also directly and effectively controlled the market price of cotton.

We can fully understand that under the guidance of the national macro policy, the enterprises should choose the market in the form of market pactions and deal with the actual situation of the enterprises. Through the cotton market paction, we can choose the necessary ones at ease. We should not worry about the shortage of resources and the fear of "roller coaster".

The so-called day goes by every day, and the market opens every day.

In the standardized operation of the paction, it is believed that organizing the production and operation activities at ease to the fluctuating changes on the market will be like a breeze blowing on Pinghu, which is a market-based manifestation of the paction choice. It is believed that it can be adapted and accepted by most production and operation enterprises.

It is also because of such a new arrangement that many enterprises have full confidence in the whole round of production. They are not worried about the amount of resources they are facing.

Recently, there has been a downward trend in paction prices, the fluctuation of daily turnover and even the phenomenon of racket, which is not surprising to some textile companies.

On the whole, though the textile market is not so tired, the structural change is still insufficient.

Now, there are still some small and medium-sized.

The raw material is made up of the mainland cotton produced in the past year, the last year's export cotton, Xinjiang cotton and so on. Some of them haven't been listed for the 2016/2017 cotton reserves yet.

These enterprises say that the auction of Listed Companies in the future is inevitable, but only time.

In the face of the market, enterprises will still take into account the price, light weight, and decide the direction of purchase with comparative benefits. Therefore, the storage of cotton wheels, market storage, Xinjiang cotton and imported cotton will look like commodities on the display rack for enterprises to see the choice.

Thirdly, under the adjustment of economic structure and speed of development, the industry will not reproduce the roller coaster.

Facing the "2016/2017 cotton reserves", the market stores cotton,

Today, the industry is more rational than hasty.

Before the launch of the reserve cotton mill, the industry hoped and applauded continuously, but there was no price concern.

Now, the paction price of the reserve cotton is much larger than that in the early March, which indicates that all the supply and demand relations in the market will be calm and realistically reflected. The market will eventually realize the real value of the commodity in the direction of a broadly balanced interest.

We can also see from the recent cotton period, spot price, Xinjiang cotton price trend, from the supply of cotton yarn to the entire textile market, the whole cotton market is not enough to support any factor that the cotton price has plummeted.

Whether the market is changing because of the cotton market or the cotton market is changing because of the textile market, everything depends on the evolution of supply and demand so as to realize the value of cotton to cotton yarn and cotton spinning products. Under the situation of continuous slowing down of the national and global economic growth rate, maintaining social economic growth will not be negative or reverse. It has been the direction of the people, and the reserves of millions of tons of cotton resources have entered the market in the past 6 months. Cotton enterprises and textile enterprises can go all the way to a safe and secure operation.

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