Cotton price record is frequently refreshed Planting area may expand next year

This year's high cotton price may lead to an increase in planting area next year, but no matter what, the low prices in the past few years will not come back. Recently, the cotton contract in the Zhengzhou Commodity Exchange has appeared in recent contracts. The phenomenon of premiums on contracts during the period is also known as spot premiums. This is also true for the US cotton futures market.

In an analysis report, Barclays Capital pointed out that since 2006, the average discount rate of the previous month's contract for US cotton ** was 1.7% for the next month's contract, but recently it was the recent premium for long-term premium. The situation in the cotton ** is extremely unusual.

"In previous years, cotton ** did have a rare case of spot premium, which means that the current demand for cotton is far greater than the supply, and the market prefers to obtain high spot prices." An analyst in Shanghai told the author.

"If you don't grab it, you can't start it."

"This year's severe weather conditions in the Yangtze and Yellow River basins have caused the mainland's cotton not only to produce less but also to have poor quality. The listing of new cotton has also been postponed for about 20 days." Galaxy analyst Zhang Haiyuan told the author.

Faced with this situation, the person in charge of a cotton processing company in Henan Province told the author: “This year, because of the poor quality of cotton in the Mainland, we had to use high-grade cotton in Xinjiang, but Xinjiang also cut production. The factory is waiting for cotton to start, so we have to To buy it, but the amount grabbed is still only half of what it received last year."