The Cotton Market Will First Increase And Suppress &Nbsp, And Spot Trading Will Continue To Be Light.

The weekly price of the 1205 week contract was 92.92 cents / pound, up 402 points from the previous week.

Cotton in ICE stage is advanced, but overall is at a recent high level.

The pre cyclical cotton continued to decline to attract technology and speculative buying. Meanwhile, India cotton export uncertainty led to a reduction in US cotton inventories, which led to market concerns. The market expected that the US Department of agriculture's intention report lowered the US cotton area next year, and speculative fund purchases were active before the announcement, prompting cotton futures to rise continuously.

The report announced that the fund bought and sold, and the main contract pressure fell slightly, but it was still 3.4% higher than the 90.44 cent / pound at the end of last month.

The average price of Cotlook A index is 101.70 cents / pound, up 338 points from the previous week; FC Index (import cotton price index) M weekly average price 102.84 cents / pound, up 311 points.

When the spot price quotes follow the cotton step as a whole, the price of the market is higher than that of the spinning enterprise.

Recent shipment of low grade cotton has been concluded, such as Bangladesh imported Pakistan and West Africa cotton, Brazil low grade cotton exports to Southeast Asian market.

In addition, China has inquired about the future shipment of Australian cotton and bonded cotton.

Some textile enterprises pay attention to Brazil cotton.

A cotton trader pointed out that in recent months, the port cotton stocks were large, the digestion speed was slow, the capital occupied by the enterprises was large, and some enterprises' funds were tight. In addition, some enterprises needed to pay timely remittance in April, and the shipments would be strengthened.

But at present, the market sales situation and not optimistic, buyers with the use of purchase, the volume of little.

According to the US Department of agriculture, in the first three weeks of March (3.2-3.22), the United States signed a net contract for exporting 134 thousand tons of land cotton this year, exceeding the total contract volume in February (106 thousand tons) and shipping 225 thousand tons.

By the month of March 22nd, the US cotton signed a total of 2 million 645 thousand tons this year, of which 2 million 516 thousand tons of land cotton have been signed, accounting for 110% of the estimated annual export volume, and 1 million 487 thousand tons of total shipment, of which 1 million 409 thousand tons of upland cotton are shipped, accounting for 62% of the annual export volume.

According to statistics from India state trading company (CCI), by March 25th, the amount of cotton seed purchased in India was about 25 million 44 thousand packs (4 million 257 thousand tons), and the purchase volume was 27 million 465 thousand packs (4 million 669 thousand tons) in the same period last year, down 8.8% from the same period last year, for third consecutive weeks.

In March 4th, the day before the India government issued a ban on cotton exports, the purchase of new flowers fell by less than 4% a year ago.

At present, the purchase of seed cotton has come to an end in Pakistan, and most of the cotton ginning plants have been closed down.

The domestic cotton market tends to be stable, and textile enterprises continue to purchase a small amount based on spot demand, and the market trade is light.

Although cotton prices have fallen, the increase in unit production has offset some of the losses. Cotton growers have gained better income this year and are optimistic about the cotton planting area next year.

The Brazil cotton Merchants Association announced the latest production forecast report. It is estimated that the total output of cotton in Brazil next year will be 1 million 730 thousand tons, 95 thousand tons lower than the previous forecast, a decrease of 200 thousand tons compared with the previous year, the export volume of 950 thousand tons next year, a reduction of 15 thousand tons compared with the same period last year, and the ending inventory of 883 thousand tons, representing a reduction of 30 thousand tons compared with the same period.

Four, market outlook

Recently, ICE cotton continued to rise under the support of technology and speculative buying, but basically the supply of cotton was adequate and consumption continued to slump, which continued to suppress cotton prices.

Cotton is expected to be vulnerable to shocks.

In addition, with China, the United States and India gradually entering the new flower sowing period, weather factors will become a market hype.