Economic Policy Stimulates Obviously &Nbsp; Cotton Price Will Be Good.

With the end of domestic cotton prices bottomed out,

Song Jiening, a researcher on agriculture, forestry, animal husbandry and Fisheries of CIC, pointed out that although

First, the CBRC recently encouraged credit funds to turn to small and medium enterprises to protect SMEs' capital chain.

This will enable the textile foreign trade enterprises to effectively release their business pressure, and the business scale is expected to expand in the second half of the year.

Downstream demand also showed a rapid growth trend; in addition, as China's textile industry bargaining power gradually increased, the impact of exchange rate factors also gradually subsided.

Second, it is expected that China's personal tax bill will be launched in the second half of the year and will be implemented in October.

Tax cuts will encourage domestic consumption to gain a major advantage. The garment industry, as the main channel of domestic consumption, will obviously boost the industry's rapid development. With the increase of profits from garment distributors to garment processing enterprises, cotton prices will rise sharply with this round of economic stimulus.

Thirdly, the formation mechanism of cotton underpinning price is not clear, and the stimulating effect on the market price is obvious.

In March 31, 2011, the national development and Reform Commission released the plan for temporary storage and storage of cotton in 2011, which is the first cotton storage system established in China.

Although it did not affect the high cotton price at that time, it played a key role in the cotton trend in the future market, and the difficulty of shorting cotton prices increased.

Song Jiening pointed out that although the trend of cotton futures prices has been basically clear, investors should focus on preventing the fluctuation of market prices caused by stockpiling merchants' spying, and on the one hand, avoiding the impact of excessive price fluctuations on the ultra short line; on the other hand, in light of the uncertain market situation, we should try to maintain a light investment position and wait-and-see investment mentality.

The 2010-2015 year China cotton market investment analysis and prospect forecast report released by CIC pointed out that China's cotton production ranks first in the world, and is the largest textile producer and the largest cotton consuming country. The cotton industry plays an important role in the national economy.

The industrial chain chain composed of cotton production, circulation, processing and textile is complete and has strong system superiority and radiation effect.