资讯 1 10 英文网 296 Weekly 561515 CNCotton Weekly Report (July 18, 2016) 2016-07-19 15:22:57 yangfang
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CNCotton Weekly Report (July 18, 2016)
2016-07-19

Last week (July 11-15), spot and futures market saw sharp gains in both domestic and world market. Domestic cotton yarn price extended rally. Polyester staple was steady. 

  

Physical and futures market soared in domestic and world market 

   

On July 15, inland standard styles averaged 13952 yuan per ton, up 408 yuan or 3.01% from prior week and up 925 yuan or 7.1% from a year ago. ZCE CF1609 settled at 15540, up 1485 yuan or 10.57% from previous week and up 3060 yuan or 24.5% year on year. CNCE MA1607 average 14515 yuan, 651 yuan or 4.7% higher from prior week and up 2340 yuan or 19.2% from a year ago. 

  

Cotton yarn rally extended, polyester staple steady 

   

On July 15, C32S carded yarn was quoted at 21100 yuan per ton, up 300 yuan or 1.44% from prior week. Polyester staple fiber is 6790 yuan per ton, down 10 yuan or 0.15% from previous week.  

  

World cotton price exploded 

   

On July 15, ICE nearby contract settled at 73.86 cent per pound, up 7.94 cent or 12.04%. International Cotton Index (M) based on 1% import tax is equivalent to 14351 yuan per ton, up 1467 yuan or 11.38%, 399 yuan above domestic level, a contraction of 1059 yuan from prior week. Based on sliding scale tax, this is equivalent to 15332 yuan per ton, up 977 yuan or 6.8% from a week ago, 1380 yuan above domestic equivalent, an expansion of 569 yuan from previous week.    

  

Reserve selling for the week of July 11-15 totaled 149300 tons, 100% of the total offer. By July 15, 2015/16 reserve sales reached 1.3329 mil tons, including 1.0367 mil tons of domestic reserve and 296100 tons of imported reserve. Traders in Jiangsu and Henan reported that average price exceeded 14000 yuan. This is accompanied by an uptick in ZCE cotton futures. CF1701 reached new high of 16030. On July 14, T3128B hand-picked lots are sold at 14200-14400. The growing pressure from a rising cotton price is now being passed on to downstream sectors, but gains in yarn and fabric are much smaller compared with cotton. Some mills which mainly produce C40S and lower counts are actually facing 500-1000 yuan loss. Meanwhile, middle merchants and weaver in the downstream segment are not able to digest the price gains either. Inventory of low count/conventional styles are already building rapidly, which forced some mills to reduce operation.  

  

Technically, CF1701 experienced a steep correction after reaching its all-time high of 16000. This indicates that 16000 is a major resistance. Price should consolidate at recent highs in the short run. Domestic cotton price is expected to stay firm but greater price volatility is likely. 

  

Price Table of Cotton and Cotton Yarn in the International and Domestic Market during July 11-15, 2016  

 

Item

Unit

July 15

From Last Week

From Last Year

Change

± %

Change

± %

CNCotton B Index (average price of standard lint cotton in eastern provinces)

Yuan per ton

13952

408

3.01

925

7.1

Settling price of ZCE cotton futures CF1609 contract (T328 cotton)

Yuan per ton

15540

1485

10.57

3060

24.5

Average price of CNCE E-forward MA 1607 contract

Yuan per ton

14515

651

4.70

2340

19.2

International Cotton Indices (M)

Cents per pound

83

8.8

11.83

10.7

14.8

Imported cotton cost in RMB with 1% tax

Yuan per ton

14351

1467

11.38

2821

24.5

Imported cotton cost in RMB with sliding-scale tax

Yuan per ton

15332

977

6.80

1785

13.2

Settling price of ICE cotton futures October contract

Cents per pound

73.86

7.94

12.04

7.99

12.1

Transaction price of C32S carded cotton yarn

Yuan per ton

21100

300

1.44

775

3.8

1.4D×38mm PSF (cotton type)

Yuan per ton

6790

-10

-0.15

-425

-5.9

USD/RMB

6.6805

0.00

-0.07

0.56

9.17