Market Pessimism Heavier Zheng Cotton Fell 1109 Thousand Yuan

In May 5th, the main contract of zhengmian 1109 jumped into the air and opened at a low price. It quickly dropped below 25000 yuan / ton and ended up at 24600 yuan / ton, a recent low of 5.9%.

Xiong Tao, an analyst at Baocheng futures court, said that the decline in cotton futures was mainly due to the high cotton price to curb the downstream demand. He believed that after the current round of adjustment, investors could buy in the vicinity of 24500 yuan, while Wanda futures analyst, however, believed that cotton still had room to fall and maintain a short view.

High cotton prices inhibit downstream demand

Recent cotton

For the impact of cotton price fluctuations on downstream enterprises, Yuan Ren Qing pointed out that "the whole

First of all, the downstream yarn is unsalable, so that the textile enterprises start up rate is insufficient, and even a few enterprises have stopped work phenomenon; the yarn inventory of textile enterprises is very large, the capital turnover is not good, and the purchasing of lint is not positive. Yuan Ren Qing expects that after the 1000 yuan / ton drop today, Shandong Wei Qiao group may continue to lower the purchase price of lint next week.

In addition, it is estimated from time that the garments currently being sold are made of high cost yarns made of cotton which are sold at a high price of 30000 yuan / ton last year.

Yuan Renqing also pointed out that the existing textile enterprises

Is there still room for cotton to fall?

Yuan Renqing believes that after this round of adjustment, investors can buy in the vicinity of 24500 yuan / ton price.

Wanda futures Xiong Tao has different points of view.

He believes that the cotton fell from 30000 yuan / ton is not smooth, 28000, 26000 front-line have encountered many obstacles, inferring cotton down still room.

Xiong Tao judged that if there was a setback in the future market, such as a downtrend or a reappearance of a decline of nearly 1000 yuan, the market will probably come to an end.

At present, many people still have a gap in the market. They believe that the American tornado, drought and textile enterprises in Jiangxi, Hubei may make the price of cotton better.

In this regard, Xiong Tao believes that the situation of the cotton mill is difficult to change in a short time, and those who hold these long thinking are being exploited.

And if the US dollar continues to weaken and the crude oil rises, it will be possible to trigger a rebound.

Orders for the Canton Fair are still dominated by short orders.

The 109th China Import and Export Fair was held in Guangzhou from April 15th to May 5th, where textile trading was conducted on 1-5.

Li Hua, manager of China cotton information network, said that the situation of Spring Trade Fair this year is still not very good, mainly because the current cotton prices are falling and textile enterprises are hard to grasp, so they are more cautious.