In the past 10 days, cotton prices have fallen by more than 20%. Some insiders said that upstream spinning and weaving companies may be able to retreat from the whole body, but downstream apparel companies have accumulated a large number of high-priced fabrics and clothing made by them, and increased the terminal price. At the same time, the weather has not cooled, and winter sales have been sluggish. The industry believes that if cotton prices continue to fall, there will be no cold weather at the end of December, clothing companies will have to arrogant clothing one month in advance.

Cotton prices fell by more than 20% in more than 10 days

The National Development and Reform Commission announced monitoring data showing that since November 12, domestic commodity prices have fallen sharply. Compared with the high point of November 10 or 11 on November 24, the domestic commodity prices of copper, zinc, rubber, cotton, PTA, plastics, soybean oil and white sugar all fell by more than 10%. Among them, cotton fell the most, with a drop of 23.6%.

From the spot market, the China Cotton Association released data showing that China's cotton price index (328 cotton) fell to 26,902 yuan / ton, compared with the high point of 31,302 yuan / ton on November 11, more than 10 days It fell by 14%. At the same time, since mid-November, Shandong Weiqiao Group, as the industry benchmark, has continuously lowered the purchase price of lint, and dropped 500 yuan/ton on the 24th. At present, the purchase price of grade 3 lint is 26,500 yuan/ton, and the price of grade 4 is 26,100 yuan. /Ton.

Cotton prices have a 10% downside

“Although the price of cotton has fallen by a large margin, there is still room for decline.” Jia Fengmei, president of the Jinan Textile and Apparel Industry Association, said that cotton prices have more than doubled this year, despite the large gap between supply and demand. It will not rise to such an extent. As the national regulatory policies gradually show their effects, the speculative funds will be withdrawn one after another, and cotton prices will continue to fall.

In analyzing the reasons for the decline in cotton prices, the National Development and Reform Commission also said that there was excessive speculation in the early stage of the market, and the price deviated from the fundamentals of supply and demand. The State Council issued a notice on stabilizing the market price to ensure the basic livelihood of the people, highlighting the severe crackdown on the market. Such violations and violations, to curb excessive speculation, the market is expected to respond to this, the capital profit-taking, rapid withdrawal.