Reserve Cotton Spot Prices Are In A Relatively Stable Stage.

This week

The paction situation is good, supporting cotton price temporarily, and the spot price is in a relatively stable stage.

US retail data is much better than market expectations, dispelled fears that the US economy is recovering less than expected.

The first quarter of the euro area growth, the economy maintained a recovery trend, but growth is lower than expected, there are still downside risks.

China's April credit data fell sharply and economic data fell down.

The overall economic downturn is not conducive to commodity rebound, nor is it conducive to the growth of textile demand in Europe and the United States.

The off-season of textile enterprises is just beginning.

For the ice cotton price, the most important news this week is the US Department of agriculture report. It gives a general judgement to the short and medium and long term production and supply and marketing situation. These data have good side and bad side.

The decline has also made global data better, and a serious supply pattern has been eased. For the United States, demand for exports has not increased correspondingly due to increased production.

At present and in the future, China will continue to use policies to guide cotton demand to the domestic market, consume its own output and inventory, and thus reduce imports. This will directly affect the export volume of US cotton, and the US cotton carry over inventory is on the rise. The US data is worse than expected. This may be the main reason for the continuous weakening of US cotton prices in the near term, plus the continued upward trend of the US dollar, so that commodity prices including cotton will be under pressure.

Ice cotton futures price stabilised near the 60 cent contract in July, but cotton price rebounding factors still exist. Cotton price is expected to show a weak adjustment in the coming week without new news.

Zheng cotton futures will be temporarily adjusted in the vicinity of 12000. With the advent of the off-season, demand will be reduced, and reserve cotton will continue to be put into operation.

The hot sale of reserve cotton can not conceal the fierce competition of textile enterprises. It is facing competition between textile enterprises and imported yarns in China. In the international market, the export markets like Europe and America are also occupied by countries with cost advantages, such as Southeast Asia, and so on in the peak season. The off-season will be more and more difficult. The off-season of textile enterprises has just begun.

China's domestic market is most concerned about the delivery of cotton reserves, cotton stored cotton hot cotton.

The raw material inventory of traders is much lower than the expectation of all parties, and spot cotton can not find the right cotton. The reserve cotton will gradually fill these demands, and the demand can not be sustained continuously. With the completion of the replenishment of textile enterprises and the arrival of the off-season, the turnover rate of cotton reserves will decrease significantly.