Cotton linter market promising with strong start

On the first trading day after the Chinese Lunar New Year, Chinese soybean meal and soybean oil futures surged, nearly hitting the daily limit, significantly boosting market confidence in cottonseed and cotton by-products. The cottonseed market continued its strong performance extending before the holiday, with prices continuing to rise. The price of cotton linter also increased, with a cumulative rise of over 300yuan/mt since the New Year's Day.

Since the market opened on Feb 5, soybean meal, soybean oil, and palm oil futures have seen continuous surges or daily limits. There is a strong expectation of price increases for cottonseed oil and cottonseed meal, with offers gradually rising by around 200-400yuan/mt. This boost has allowed the cottonseed market to maintain its upward momentum before the holiday. In addition, due to low processing volumes at ginners and low spot inventory of cottonseed, along with downstream enterprises resuming operations, cottonseed trading has gradually recovered. The cottonseed markets in Xinjiang and Shandong have continued to strengthen, with significant price increases. Currently, the price of Xinjiang cottonseed is around 3,000yuan/mt inland, while the price of Xinjiang cottonseed is about 2,500yuan/mt, rising by 200yuan/mt since the Spring Festival.

Around the eighth day of the lunar month, as refined cotton and cotton linter pulp mills gradually resumed operations, inquiries in the cotton short fiber market have increased, and overall trading has gradually recovered. Furthermore, many cotton linter mills had pre-sold goods at the end of last year. Prices of cottonseed in Shandong and Xinjiang have continuously risen around the Spring Festival. Supported by rising costs, the cotton linter market has welcomed a "strong start," with prices continuing to rise. Currently, the price is around 5,000yuan/mt for industry-grade refined cotton outside Xinjiang, short-distance delivered, while around 4,500-4,600yuan/mt, ex-works or short-distance delivered in Xinjiang, with increases of around 100-200yuan/mt.

In summary, after the Spring Festival, soybean meal, soybean oil, and palm oil futures continuously surged or hit daily limits, greatly boosting market confidence in cottonseed and cotton by-products. Prices for cottonseed oil and cottonseed meal have also sharply increased, with offers rising by 200-400yuan/mt, driving cottonseed prices higher in Xinjiang and Shandong. The cotton linter market has gained significant confidence, with price moving up. Since the New Year's Day, both cottonseed and cotton linter prices have risen by more than 300yuan/mt. Recently, as downstream enterprises resume operations, supported by pre-sale orders and restocking demand, a stable-to-strong trend is expected in the short term.