Sino US Trade Negotiations Look Good, Expect Downstream Textile Companies To Look Ahead To Cotton Prices In The Future

Last week, China and the United States released good news after negotiations. No surprise was expected. Zheng textile rose slightly, and the downstream textile enterprises are also optimistic about cotton prices in the future.

A textile manufacturer in Shandong said that the quota of 1% cotton quotas within the year 2019 was less than that of the previous year, which led to the need for greater efforts to purchase Xinjiang cotton to meet production requirements.

Because of the high-end yarn products, even if the quota is received, it can only buy cotton and cotton from Brazil and cotton.

For the future cotton price trend, the company believes that cotton prices in the first half of the year are mainly based on concussion, which is expected to rise in the second half.

The reason for the rise is that the global cotton production and demand are in a tight balance, according to the USDA monthly report, of which there is a gap in China.

According to the January monthly report of the national cotton market monitoring system, the domestic cotton output is 6 million 75 thousand tons, while the demand is 8 million 63 thousand tons, plus 1% tariff quotas and sliding tax quotas, which also can not fully meet consumer demand.

Moreover, the scale of national cotton reserves has dropped to a low level. Under such a combined influence, cotton prices are expected to increase in a certain range.

In view of the impact of Sino US trade war on the textile industry, the company believes that the two countries' tariff increases have a great impact on textiles, especially on knitwear, and the impact of woven fabrics and shuttle fabrics is relatively small.

The Sino US trade negotiations have been better than expected, which is more supportive of the rise in cotton prices.

However, there are other professionals who say that at the present stage, the price of cotton prices should be cautious. There are still many uncertainties in the current market, and it is not easy to overlook empty and overlook.