Cotton Futures Shock Market Intensifies Spot Market Price Wait-And-See

Since February 25th, the main CF1905 contract of Zheng cotton futures has continued to oscillate in the range of 15200-15400 yuan / ton.

On the one hand, there is a lack of strong support from the fundamentals. On the other hand, as the delivery period approaches, investors turn their attention to CF1909 contracts.

In March 4th, the 1905 futures contract of ICE futures fell by nearly 1%, while the second day jumped nearly 2%, and the internal and external market fluctuated sharply, making the domestic market sentiment agitated.

However, the recent performance of the spot market is different.

First of all, the number of recent enquiries in Xinjiang has been increasing steadily, and the price of pre harvest cotton has increased.

According to the survey, with the increase in the cost of cotton warehousing costs and the increase in interest rates over time, and the increase of hidden costs in cotton ginning mills, cotton merchants are very firm and have a strong sense of resistance to low prices.

In addition, with the arrival of spring, some cotton mill's new rotation library is opened, and merchants' expectations for the market are enhanced.

At present, the mainstream price of Xinjiang's "double 28" cotton picking gross weight is 15600-15700 yuan / ton, and the mainstream price of "double 28" picking cotton and wool weight is 15800-15900 yuan / ton, and some manufacturers refuse to make an inquiry of 50 yuan / ton above the counter-offer price.

Of course, this is also partly related to the acquisition of high quality registered cotton warehouse receipts by some domestic traders.

In order to alleviate the pressure of capital, the cotton ginning factory will pledge or resell the high-quality lint, resulting in the remaining surplus of "double 29" or more.

Therefore, the ginning plants are selling at a reasonable price.

Secondly, the purchase of seed cotton is difficult for the ginning enterprises in the mainland market, and the number of lint processing is difficult to maintain.

In the dilemma of acquisition and processing, cotton traders expect to raise cotton prices and obtain limited resources for high profits.

The import price increase of imported cotton has prompted some cotton mills to turn raw cotton purchase into imported cotton, especially in Shandong and Hebei.

It is estimated that the purchase of imported cotton with quotas can save nearly 1000 yuan more than the direct purchase of RMB per spot.

Therefore, the recent cotton market trading outside the port presents a hot situation. Port cotton traders are optimistic.

According to feedback, there are more customers coming to Hong Kong Daily enquiries in the near future. If there is a certain rebound in the external market, the spot market will rapidly increase.

"Golden three silver four" traditional peak season is coming, whether cotton city is getting warmer on schedule, we need to continue to pay attention to the overall supply and demand changes of the market.

At present, the upstream mentality is strong, and the downstream will continue to be cautious.

The two sessions of the two countries, Sino US trade negotiations or the signing of the "agreement", or will break the long silence of the cotton market.