Domestic Cotton Prices Will Rebound

Since April, the price fluctuation of domestic cotton market has affected domestic and foreign markets.

Synchronized rise, take 32 pure cotton yarn as an example, according to China cotton information network statistics, up to now, domestic and foreign cotton yarn prices continue to 500-600 yuan / ton upside down phenomenon.

Traders reflected that the reason for the upside down was mainly due to the shortage of conventional cotton yarn, while domestic textile enterprises had rigid demand for imported yarn. At present, the shortage of imported yarn did not improve significantly, and prices still had support in the short term.

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To a certain extent, the rotation will reduce the cost of domestic yarn, the degree of inversion may be enlarged, and some downstream or more domestic yarn will be pferred.

Fundamentally speaking, the market demand for different types of yarn is different, but the price is difficult to boost. The price of imported cotton yarn is not supported, and the import volume may also decrease.

There are also traders thinking about the market in reverse thinking. From the technical aspect, the price of cotton in the future is expected to rise.

Traders bought or sold, and the price of external markets followed up, and the number of imports increased.

But in the case of limited market demand, imported yarn is priced or even closer to domestic yarn.

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This year, cotton production has decreased and demand has been raised. At present, China's new flower inventory has dropped to about 400 thousand tons.

With the development of dumping and storage, after the traders hoarding goods to a certain extent, their storage capacity will decline. The pace of on-going procurement will determine the rhythm of throwing and storing.

At that time, the situation that the market will rush to buy state cotton stores will get better, and the downward trend of the water will be reduced, and the tension in the spot market will be eased.

At present, the new flower stock is only 400 thousand tons.

Although late national storage cotton will occupy most of the spot demand after being out of storage, the new flower resources will still be more intense in the later stage.

Therefore, I believe that we can buy the 1609 contract to reflect the basic situation of the shortage of resources in the spot market, but by selling 1701 contracts, we will avoid the negative impact of throwing and storing resources on the spot market and the looser pattern of the global market in the new year.

But for the new year's cotton market, first of all, the cotton that will be thrown this year will meet the market demand from September to November, and there will be no market tension.

Secondly, the planting area of the main cotton producing countries in the international market has increased significantly in the new year. Under normal weather conditions, the output will increase by more than 1 million tons.

At the same time, the demand of the international market is occupied by China, and China's demand for cotton in the international market has been squeezed by national cotton reserves.

Therefore, the export pressure of the international market is very large.

As the state will also throw away the domestic and foreign cotton prices, the decline in foreign markets will be pmitted to the domestic spot market.

Although the dumping began in March, the market is expected to be reflected in January.