Cotton Prices Rose &Nbsp; "Benefit" Stocks Are Now Building Opportunities.

With the increase of cotton consumption in textile enterprises, cotton prices have been rising again in recent days. The price of three grade cotton has been reported to be 16 thousand and 200 yuan / ton in some areas.

Analysts believe that in recent years, because of the decrease in global cotton production and the drop in inventory, cotton prices have maintained a high probability of keeping high in the year. Under such a background, some beneficial cotton price rising sections are expected to win the "big win" market.

Demand boosts cotton prices

In the near future, the main contract of Zheng cotton was continuously increased, showing a good momentum of rising.

Yesterday, Zheng cotton main 09 contract closed at 17340 yuan per ton, all day high and high, rose 230 yuan, or 1.34%, traded 360 thousand hands throughout the day, 90 thousand hands higher than the previous trading day, holding nearly 260 thousand hands, increasing more than 30 thousand hands.

Meanwhile, cotton prices continue to rise in the spot market.

In March 19th, the cotton trading market of the national cotton trading market reached 27620 tons, an increase of 460 tons compared with the previous trading day, an increase of 3040 tons of orders, and an aggregate order of 123380 tons.

Several MA (domestic cotton 229B) contract rose almost to the limit, the main MA1005 contract closed at 16950 yuan, up 265 yuan.

In March 19th, China's cotton price index rose by 31 yuan to 15704 yuan.

In the international market, cotton prices rose sharply during the overnight ICE period. The most active May cotton rose 104 points, or 1.3%, at 82.21 cents per pound.

It is understood that the increase in cotton prices is mainly due to the global cotton production and inventory decline in the world at the same time, the demand is increasing.

In an article published on its website last month, the national development and Reform Commission said that the price of grain and oil in the international market has been rising continuously in recent years, stimulating the planting area of grain and corn, squeezing the cotton planting area and reducing production for three consecutive years.

The NDRC's article also believes that as the world economic growth situation is getting better and the demand for cotton is increasing, the volume of international cotton trade will also rise sharply.

The US Department of agriculture predicts that global cotton consumption will reach 24 million 900 thousand tons in 2009/2010, an increase of 700 thousand tons over the previous year, an increase of 2.91%. When the annual output is below 2 million 540 thousand tons of consumption, it will not meet the demand for fourth consecutive years.

The global cotton trade volume was 7 million 330 thousand tons, an increase of 11.94% over the previous year, an increase of 11.94%, the largest increase in the past four years.

At the same time, the largest exporter of cotton in the United States, because of the decline in output, the export volume decreased by 17.17% over the previous year, which may have an impact on the rise in cotton prices.

At the same time, the textile industry in China continued to stabilize and pick up in the second half of last year.

According to customs statistics, in the first two months of this year, the export volume of China's textile yarn, fabrics and products was 10 billion 159 million US dollars, an increase of 39.43% over the same period last year, of which the export volume in February was 4 billion 578 million US dollars, up 78.60% over the same period last year. The monthly export growth rate has been expanding since November, and the export volume of our clothing and accessories in the first two months of 2010 was 18 billion 83 million US dollars, an increase of 23.71% over the same period.

Insiders Yu Ronghua told reporters that with the economic recovery, textile enterprises demand for cotton is increasing, but supply and demand can not keep up, pushing up cotton prices.

In 2009, the national cotton yarn production was 24 million 56 thousand tons, up 12% from the same period last year, higher than the growth rate of GDP 8.7%.

Considering the continued reduction of total cotton area and limited cotton planting scale, the cotton market in 2010/2011 is still showing a tight supply situation, and cotton prices are expected to continue to rise.

Chemical fiber stocks will also "benefit"

When it comes to beneficiaries that cotton prices continue to rise, it must be cotton planting enterprises.

However, the high price of cotton will support the price of viscose staple fiber, and the chemical fiber plate is also expected to "benefit" the rise in cotton prices.

Analysts believe that

It is understood that viscose staple fiber is basically closer to cotton because of its basic properties, and it is superior to cotton in dyeing, crease resistance and spinnability. Therefore, it is often used as a substitute for cotton. It is interwoven with cotton, polyester, nylon and other fibers for weaving yarn and cloth. With the advantages of viscose fiber, the proportion of viscose fiber in textile is gradually increasing. Viscose staple fiber is a new trend in part of cotton spinning.

Because of the rising cotton prices and higher crude oil prices, the cost of chemical fibers remains high, which has a certain supporting role in the price of viscose products.

This year, the price of cotton lint, cotton pulp and viscose staple fiber has soared again, and the higher cotton staple price has made cotton pulp production enterprises lose money, prompting cotton pulp to have a driving force, while the downstream cotton yarn market is gradually booming due to the gradual improvement of weaving operation rate, and the space for price rise still exists.

Wang Zhilin, an analyst with Kai Ji securities, said

Analysts believe that the price of viscose staple fiber has been rising this year, which is related to cotton prices and cost drivers. The performance of viscose enterprises this year is expected to be better than last year, and the industry has entered the business cycle.

Xintai securities analyst pointed out that the recent textile industry growth to enhance the demand for chemical fiber products strong, driven by the rise in the cost of organic raw materials upstream, chemical fiber and other products prices rose sharply.

With the resumption of the textile and garment industry in the lower reaches, the price of some chemical fibers such as spandex and viscose staple fiber will continue to go up.