How Much Room For Domestic Cotton Prices To Rise?

1. Price Bulletin: Domestic lint 129 level 21835 (+10) yuan / ton; 229 level 20842 (+12) yuan / ton; 328 level 19661 (+12) yuan / ton; 428 18833 (+18) yuan / ton. Domestic textiles: polyester staple fiber 11670 (-50) yuan / ton; viscose staple fiber 17470 (-50) yuan / ton; C32S price 26670 (-20) yuan / ton.

2. price structure: Yarn cotton The price difference C32S-CottonB is 7009 yuan / ton; the cotton polyester price difference is 7991 yuan / ton; the term price difference is CF1209-CNCottonB 1859 yuan / ton; the price difference between the inside and outside cotton is CCindex328-FCindex328 2373 yuan / ton.

3. spot in the country: the small peak of lint purchasing after the first quarter of the cotton textile enterprises in the lower reaches of the current cotton textile industry has passed. Although textile enterprises have offered quotations, but the enthusiasm for purchasing has been reduced, the spot market turnover has cooled down, and the enthusiasm of the processing enterprises has begun to pick up. The sale of cotton yarn and grey cloth is generally difficult.

4. International Spot: in February 24th, the price of China's main port of import cotton continued to decline, and most varieties still fell by more than 2 cents. Judging from the current situation, the market is hard to reverse the downtrend in the face of excess resources, and a small amount of demand that emerges is not enough to support cotton prices.

5.ICE cotton: in February 24th, ICE futures resumed from the first two days of the fall. Cotton prices rebounded under the stimulus of commercial buying, but the volume shrank. Analysts say that the US textile mill has maintained production at a low inventory recently, so cotton mills have been attracted to buy textile products after the fall in cotton prices.

Summary:

Current domestic cotton market In the structural contradiction under the background of weak demand. The high cotton price difference between domestic and foreign countries has limited the increase in domestic cotton prices. If the spread of the price is widened again, it will be very likely to encounter the real pressure again. The author thinks that there is a big pressure above Zheng cotton futures and does not have a bull market basis. The strategy should be more cautious. The empty list can be handled flexibly, and the early sale of hedging positions is firmly held.