Further upward momentum expected for cotton linter after the Spring Festival

As the Spring Festival approaches, downstream enterprises have begun wrapping up and taking holidays. However, the recent market prices for cottonseed and cotton linters have been steadily rising, with increases of around 100-200yuan/mt since the New Year's Day.

Recently, the cottonseed market has shown a strong trend, with prices steadily pushing upward. There are three main reasons: First, the processing of seed cotton at ginners is gradually coming to an end, and cottonseed is being sold as it is processed, resulting in limited spot inventory at ginners and strong support for cottonseed prices. Second, there has been an increase in purchasing by oil and delinting mills, and the breeding industry, with year-end stocking up, leading to faster cottonseed sales compared to the same period of the previous year. Third, the prices of cottonseed meal and cottonseed oil have rebounded, driving cottonseed prices further up. Currently, the price of cottonseed in Xinjiang is around 2,250-2,320 yuan/mt, and that for inland cottonseed is about 2,800-2,850yuan/mt, with an increase of about 100yuan/mt since the New Year's Day.

As cottonseed prices have been rising slightly, along with favorable supply and demand dynamics, downstream plants have been actively purchasing and stocking up at year-end. Under the influence of multiple factors, the cotton linter market has been continuously strengthening, with prices consistently rising. Currently, the price of cotton linter for industry-grade refined cotton in Xinjiang is 4,400-4,500yuan/mt, and in inland areas is around 4,800-4,900yuan/mt, ex-works or short-distance delivered, with an increase of about 200 yuan/mt since the New Year's Day.

In summary, under the resonance of multiple factors, the price of cottonseed has been steadily rising, and the cotton linter market is showing a strong trend with continuously increasing prices. As downstream enterprises are wrapping up and taking holidays, the upward momentum in the cottonseed and cotton linters markets seems to be maintained, and an upward driving force after the holiday can still be expected.