How To View The Cotton Market Under The Shadow Of Bad Luck?

This week, because of the escalation of Sino US trade frictions, the whole cotton market is enveloped in a pessimistic atmosphere.

Those who abandon the market have their waiters.

In particular, the ICE cotton fell sharply and Zheng cotton plummeted. Even the Xinjiang Library's cotton outlet price fell to 300-400 yuan / ton.

At the moment, the market is shrouded in profits.

So how do we view the market and how to operate it?

First, the bad has been enlarged to the extreme.

In May 10th, after the disclosure of US tax increases, ICE futures closed down. This Monday (13), Zheng cotton was down.

However, since the beginning of this week, cotton prices have slumped and the US tax increase or only a fuse has been made, because the expected increase in cotton production in the United States and the pressure from the national cotton mill has brought great pressure on the market. The escalation of trade friction between China and the United States is just the last straw to overcome the camel.

Finally, the boots fall, and it is also the best time to play the best.

Two, there are still positive factors in the market.

First, in order to provide a buffer period for a sudden increase in taxes, the office of the United States trade representative also announced that 200 billion of the list products were exported before May 10th and entered the United States before June 1, 2019. The tax rate is still 10%. Secondly, although Sino US trade disputes have worsened, the market eagerly expects the heads of state of the two countries to meet at the G20 summit in June. Thirdly, since May, there have been heavy rain, strong winds and cooling weather in the southern Xinjiang and Northern Xinjiang since May, which may have an impact on cotton production this year.

Misfortune depends on happiness.

After the bad market is over, the cotton market will take a turn for the better.

I believe that for cotton people, we should seize opportunities and rise in despair.

1, identify the market low and make a decisive entry into the market.

In the near future, both futures and spot markets have seen a big decline. They are expected to continue to go down this down week. But this time it should be the deepest fall this year, and the higher they fall, the more hopelessness the greater the hope for the future.

2, resources remain the key this year.

The US tax increase has restricted the pace of China's textile and clothing entering the us to a certain extent. Similarly, what is the counterpart of China's resistance to the entry of US cotton into China?

Will the price be that cheap?

Will domestic cotton get the chance?

3, moreover, this year, Xinjiang cotton production is expected to have a strong reduction in production. In addition, the huge gap in China's cotton utilization this year is mainly from imports. Can imported cotton assume the historical responsibility?

To sum up, 2019 is an important year. For cotton people, there are both great challenges and great opportunities.

Facing the challenge and advancing bravely and embracing the opportunity of the Phoenix Nirvana, we can achieve the historical mission of a modern enterprise.