Zheng Cotton Once Again Dropped To 15000 Yuan / Ton Clearance To Explore The Limited Space.

Recently, Zheng cotton prices continued to bottom up the trend of the shock, the current price deviation in the short term, the spot price is relatively stable, while the price of cotton fell again to the 15000 yuan / tonne pass, down kinetic energy is insufficient, thanks to the progress of Sino US trade negotiations and the important supporting role of technology, the price rebounded slightly.

On the macro side, China and the United States continued their negotiations in Washington last week, and the two sides reached an agreement in April to further enhance their agreement. The market as a whole is optimistic about the progress of the negotiations.

In April 1st, China announced that the manufacturing industry PMI rose to 50.5, returning to the top of the withered line, showing that the economy was recovering and providing a good external environment for commodities.

In the international market, USDA issued a report that the US cotton planting intentions in the next year were far less than expected, with the intention to grow cotton area of 13 million 800 thousand acres, a decrease of 2% compared with the same period last year, while the market is expected to be 1410-1550 acres, of which the land cotton area is 13 million 525 thousand acres, down 2.3% from the same period last year, and the area of Pima cotton is 255 thousand acres, up 2.4% over the same period last year.

The largest production area in Texas and Georgia decreased by nearly 6% over the same period last year. This also promoted the continuous rise of ICE in the US, and the pattern of external strength and weakness continued to maintain. This also made the difference between domestic and foreign cotton prices continue to return, and the current price difference remained at 1000-1100 yuan / ton.

In the domestic market, up to April 2nd, 5 million 290 thousand tons of lint were processed, 5 million 150 thousand tons in Xinjiang, and 5 million 290 thousand tons in the whole country, including 5 million 100 thousand tons in Xinjiang and 190 thousand tons in the mainland.

According to Xinjiang highway and rail pport data, in September 2018 -2019 February, the total shipment of 1 million 220 thousand tons of cotton pported by the whole country was reduced by nearly 600 thousand tons compared with the same period last year. Xinjiang is the benchmark delivery place for cotton, and the stock exchange also has additional delivery warehouses. At present, there are 6 designated delivery warehouses in Xinjiang, which makes it easier and faster for Xinjiang cotton companies to make warehouse receipts.

As of April 3rd, Zheng cotton warehouse receipt 16837 (-21) sheet was valid for 4308 (+9) sheets.

The total amount of registered warehouse receipts and forecasts is 21145 (-12) sheets, which is equivalent to 845 thousand tons of lint.

At present, it has entered the traditional peak season of textile industry, and the demand for downstream has gradually recovered. Cotton yarn has been better than before. In some areas, the price of cotton yarn has risen slightly, and the confidence of textile enterprises has been restored.

Generally speaking, the current market is full of market factors, and the price of Zheng cotton is also tangle.

Last week, the CF1905 contract returned to the 15000 yuan / tonne pass, CF1909 dropped to 15500 yuan / ton, the decline in kinetic energy sharply weakened, spot price pactions began to become active, part of the set of insurance disk profit margins, and the spot price is relatively stable, continued downward space is very limited.