Cotton Futures Continue To Fall And Seek Support

Uncertainties surrounding the political turmoil have led to an increase in investor risk aversion.

Analyst Zhai Naigang believes that the short-term adjustment of cotton prices is also inevitable with the help of the general environment of peripheral commodities. But on the whole, the global supply and demand tension is still good for the latter cotton market, but the cotton price is still expected to stand high again after the adjustment.

The volatile factors in the international situation continue to affect the commodity market.

Reporters learned that with the recent two years of cotton market adjustment,

Xinjiang cotton is still the main body of priority buying.

However, it is understood that the downstream textile enterprises are affected by the sluggish sales and capital constraints of the finished products, and the acceptance of the high cotton prices is weakening. The cotton mills have reduced the cotton blending ratio. The current procurement is mainly to meet the needs of cotton blending, and the intensity of the replenishment is not large. The overall turnover of the market is still light.

In the face of the current market situation such as the impeding of foreign trade of the Xinjiang cotton, strong market demand and high cotton prices, Zhengshang has decided to carry out the cotton delivery business between the "cotton Yancheng" and "Lianyungang new Su Yu". The two delivery banks will play the role of the Sinop cotton warehouse. It will more effectively alleviate the difficulties of pportation and difficult delivery, and the difficulty in the operation of cotton spinning enterprises and speculative capital, so as to better play the advantages of the Zheng cotton futures market, and further promote the docking of high-quality cotton resources between the Xinjiang cotton enterprises and the mainland textile enterprises in the high-end futures market.

Analysts believe that although the recent surge in textile enterprises, but throughout the annual cotton supply and demand situation, the lack of high-grade cotton is still expected to continue to promote cotton prices rebound.

Summary of relevant data: spot quotation. In February 23rd, the price of C/A cotton in the United States was 224.70 (cents / pound, the same below), and the general port trade delivery price was 37707 yuan / ton (calculated according to the sliding tax rate, the same below).

Australia cotton quotation is 224.80, discount general port trade port delivery price 37724 yuan / ton.

Uzbekistan cotton quotation is 240.10, discount RMB general port trade delivery price 40239 tons.

The quotation for West African cotton is 225.60, and the general port trade delivery price is 37858 yuan / ton.

In February 24th, China's cotton price index CC Index328 level was 30365 yuan / ton, up 3 yuan from the previous day; CC Index229 level was 31312 yuan / ton, fell 2 yuan; CC Index527 level was 27577 yuan / ton, up 8 yuan.

According to China Weather Network February 24th, the next three days, most of the southwest, Jianghan, Jianghuai, Jiangnan, Western and Northern Southern China have small to moderate rain; northern and Western Xinjiang, Eastern Tibet, northeast Inner Mongolia, northeast and other places have small to moderate snow, of which Xinjiang has a heavy snow along the northern part of Tianshan Mountains, Northeastern Inner Mongolia and northwest Heilongjiang.

To sum up, the uncertainty of external political turmoil has led to an increase in investor risk aversion and a full adjustment of the commodity market.

Cotton futures were also dragged down sharply, and the price gradually approached the spot price.

In the face of excessive pressure on raw material costs, downstream textile enterprises are also afraid to take orders in fabrics and clothing links and the loss of orders to foreign countries.

Analyst Zhai Naigang believes that the short-term adjustment of cotton prices is also inevitable with the help of the general environment of peripheral commodities. But on the whole, the global supply and demand tension is still good for the latter cotton market, but the cotton price is still expected to stand high again after the adjustment.