New Cotton Processing Totaled Over 4 Million Tons, Supply Pressure Is Gradually Highlighting.

According to statistics, as at 24 hours in December 9th, 4 million 1 thousand tons of lint were processed in the whole country, an increase of 1.60% over the same period last year, of which 3 million 917 thousand tons in Xinjiang. The cumulative number of cotton linen has increased steadily, which means that the new cotton processed by domestic cotton production enterprises will go to the market after the short term warehousing and public inspection. According to the recent downstream procurement process, consumption is not improving, so it is expected that the supply side pressure will be more obvious before and after new year's day.

Yesterday, the US Department of Agriculture issued the December global supply and demand forecast report, which lowered global output, consumption and ending inventory. In the report, global output fell 180 thousand tons to 26 million 370 thousand tons, mainly in the United States, India, Pakistan and other countries; global consumption fell 270 thousand tons to 26 million 190 thousand tons, mainly for China's 220 thousand tons reduction; the end of the world inventory reduction of 110 thousand tons to 17 million 490 thousand tons, of which the countries involved are China and Brazil, the countries that are down are India and the United States. The data in the comparative report can be seen simply that the data are biased towards the good global market, but the most obvious Chinese market is the reduction of the consumption volume in China. As a result, the US cotton external market rose more than 1% on Tuesday, and today, after the opening of Zheng cotton, the situation of concussion has dropped.

As the number of lint processing increased in China, the number of warehouse receipts increased continuously. As of December 10th, the total volume of domestic cotton warehouse receipts has reached 26920 (including effective forecasts), with a total turnover of about 1 million 76 thousand and 800 tons, and the highest historical value in May this year is 19915.

Near the end of the year, the number of motor vehicles in Xinjiang has gradually decreased, and the freight transportation costs have remained high since November, and some small and medium-sized textile enterprises with limited cotton consumption have delayed the replenishment plan. According to feedback from Chiang Hua Hua mill, the number of recent enquiries has decreased significantly, and cotton traders in Xinjiang have begun to return. On the whole, cotton supply pressure will be highlighted before the Spring Festival as the number of new cotton circulation increases and demand is gradually suppressed.