Cotton Spot Price &Nbsp, Or Export Tax Rebate Reduction.

Spot: Binzhou, Shandong

Futures: the dollar rebounded and suppressed the bulk.

Analysis: the spot market is now down, especially in Binzhou cotton spinning mill in Shandong. In fact, it does not want to accept it. If it is not accepted, the NDRC will interfere with it, so there is no way to reduce it.

Just like the insiders say, even if they drop to 20 thousand, someone will come to send lint.

Therefore, for the speculators in the futures market, lint will not rise at all, and every high point is the opportunity to enter the empty warehouse.

An interesting example is that a large cotton mill in Binzhou, Shandong, has been buried under the bridge in advance by the departments concerned.

A certain department is going to explode the bridge. After that, I can only enjoy the broken bridge and the snow.

This is the so-called market economy with Chinese characteristics.

Therefore, the short term rebound of futures, I think, is driven by the rebound of crude oil and the behavior of capital market in futures market.

After all, there are signs that the irrational growth of the cotton market is inconsistent with the fundamentals.

There is internal news that textile industry related ministries and commissions, associations and so on, have vowed to reduce the export tax rebate, with a minimum of 5%.

If the state does not put the cotton price below 20 thousand confidence, then how can the relevant sectors of the industry reduce the tax rebate?

We see that if Zheng cotton futures return to the 26000 high point, then the high level regulation will end in failure.

In the latter part of the year, the export tax rebate for textile and clothing will undoubtedly become a bottle throat lethal poison for textile producers.

Only by lowering the price of cotton and alleviating the problem of high cost of downstream production can we reduce the textile export tax rebate by 5%.