1、 Price

According to the data of business news agency, the cotton price fell sharply in March. At the beginning of the month, the price of 3128b cotton was 16576 yuan / ton, while at the end of the month, the price was 15269 yuan / ton, down 7.89%, up 37.54% year on year.

2、 Market analysis

Domestic: after the year, the trend of domestic textile raw materials was gratifying. In late February, cotton made a big splash, and the market has been rising. At the beginning of March, the highest price was about 16800 yuan / ton. Later, due to the influence of macro factors, the U.S. stocks fell sharply, the futures cotton fell sharply, the domestic Zheng cotton long capital continued to flow out, and the cotton market began to fall. In mid March, the U.S. stimulus bill was passed by Congress, market confidence increased, and the market stopped falling and rebounded slightly. At the end of the month, the high-level dialogue between China and the United States showed great differences in negotiations. Coupled with the strong US dollar, the European epidemic rebounded again. The cotton market as a whole was unable to support, and the price fell all the way.

International: according to the report released by the U.S. Department of agriculture on March 31, in 2021, the intended planting area of cotton in the United States will be 12 million acres, a year-on-year decrease of less than 1%, the area of upland cotton will be 11.9 million acres, a slight increase year-on-year, and the area of Pima cotton will be 142000 acres, a year-on-year decrease of 30%.

Futures: since March, Zheng Mian’s main 2105 contract has been fluctuating downward, rebounded slightly at the end of the month, and then declined again, with a decline of about 10%. 31 ice cotton may contract 80.88 cents, December contract 80.10 cents.

3、 Downstream industry chain

With the decline of cotton prices and the downturn of downstream cotton yarn market, the early production orders are coming to an end, the follow-up of new orders is weak, the enthusiasm of market inquiry and purchase is obviously cooling down, and the delivery and investment are cautious. At present, the market is in the transitional period of changing seasons. Affected by the time of Xinjiang cotton, the market worries can not be relieved in the short term. Cotton yarn prices at home and abroad fell sharply this month, while grey cloth prices remained stable. By the end of February, the yarn and cloth output of cotton textile enterprises had decreased by 25.61% and 32.68% respectively, increased by 49.54% and 20.82% respectively, and the utilization rate of spinning and weaving equipment was about 90%.

At present, the domestic cotton inventory is at a high level, and the supply of imported cotton increased greatly from January to February in 2021, so the supply of cotton market is relatively sufficient. The inventory of yarn and grey fabric products has increased, the willingness of downstream textile enterprises to replenish high price raw materials has decreased, and the purchasing mentality of textile enterprises is relatively cautious. It is expected that the cotton market will fluctuate slightly in the future and pay attention to the changes of the international situation.