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1. Does Xinjiang's output exceed production expectations?

For the cotton production in Xinjiang in 2018/19, the website has sent three news backbones to invest in Xinjiang for 40 days. From the field research, the expected reduction in production in Xinjiang this year, especially in the Kashgar region of southern Xinjiang, is conservatively estimated. 15-20% reduction in production. In the early stage of this year, the market generally expected to increase production of Xinjiang cotton. Some institutions expect production to reach 560 or even 5.8 million tons, but from the current situation, it may not reach the level expected. China Cotton Information Network's November production survey data shows that Xinjiang's cotton production was 5.1 million tons, an increase of 60,000 tons compared with last year. Whether or not to make adjustments in the later period, our network will combine the big data platform of the trading market to check the corresponding purchase volume, so as to make relatively objective adjustments. Please continue to pay attention to the China Cotton Information Network production survey.

2. What is the remaining stock of cotton in the current state?

During the symposium, some enterprises expressed strong concern about the remaining stocks of the national reserve cotton at the current stage. According to market theory inventory calculations, 2.51 million tons were traded in the previous year, and the theoretical balance was 2.75 million tons. Some enterprises also indicated that the State Reserve has recently purchased some imported cotton, about 200,000 tons. At present, I have not heard any official channel news, and more market rumors.

Third, at the current stage, how do textile companies purchase raw material stocks?

In the exchange, there are different ways and channels for how to purchase resources for textile enterprises, the most prominent of which is that most enterprises at this stage use point-price transactions for procurement. In terms of direct procurement, textile companies are also more likely to negotiate the transaction in the trading market. When talking about the views of enterprises on the cotton market, most textile companies are not optimistic about this year's cotton market, cotton stocks fell once. Some enterprises have reported that their cotton stocks are about four or five thousand tons. They are already in stocks among the representatives of the participating companies, but they have not had much confidence to insist on holding them. The main reason is that the products of the company are not well sold. decreasing gradually.

In addition, it is understood that under the influence of trade friction between China and the United States this year, the overall mentality of the market is impaired, and the downward pressure on the macro economy is superimposed. From the perspective of the entire cotton textile industry chain, from the grey fabric to the yarn to the cotton, the inventory is accumulated in the product. At the end, the industrial chain is not well transmitted. Therefore, in the recent past, companies have continued to pay attention to the G20's special meeting, hoping to bring some good news to the company.

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