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    Cotton Prices Stabilize After Falling, Waiting For Market

    2019/5/21 10:07:00 11820

    Cotton Prices

    Last week (13-17 May), since May 10th, the United States increased tariffs on Chinese products valued at 200 billion US dollars from 25% to 25%, and continued to threaten to impose 25% duties on Chinese products worth 325 billion US dollars. The remaining $325 billion of Chinese products contained all textiles and clothing. If the implementation of domestic textile and cotton consumption will be serious, market confidence is insufficient and panic spreads, Zheng cotton futures will continue to decline on the two working days before last week, reaching a new low of 32 months. Cotton and cotton yarn procurement suspension wait and see, cotton spot in addition to some point price hanging plate due to a sudden collapse of futures triggered the spanaction, fixed price sales basically no deal. The spanaction price has also dropped sharply, and the weekly average price has dropped by 1052 yuan / ton. This week, the bottom price was 13893 yuan / ton, down 579 yuan / ton. Cotton price B index 14994 yuan / ton, weekly fell 233 yuan / ton, compared with Zheng cotton futures CF1905 contract, spot premium 1194 yuan / ton, week expansion 452 yuan / ton, is not conducive to the warehouse receipt registration.

    Futures. Sino US trade war continued to escalate, market panic intensified, Zheng cotton fell sharply, the first two trading days last week, 2 consecutive days down, nearly CF1905 contract on Friday closed at 13800 yuan / ton, week fell 985 yuan / ton, nearly 100 thousand tons of warehouse receipts involved in delivery. CF1909 closed at 14085 yuan / ton on Friday, fell 1125 yuan / ton weekly, set a new low of 13820 yuan / ton, 3541130 hands, 1905145 hands, an increase of 116.5%, holding 508706 positions, reducing 113564 hands, reducing 18.2%, the disk fluctuated significantly, the spanaction increased significantly, the position decreased significantly. By the end of May 17th, the top 20 seats in the positions were more than 184050 hands, reducing 50120 hands, reducing 21.4%, reducing 230082 hands and reducing 74936 hands. The rate of reduction was 24.6%. After a series of two stops, most of them were strengthened and the margin was raised. After the crash, clearance dropped to 46032 hands and 24816 hands per week. As of the end of May 17th, buying 4282 sets of holding positions, reducing 23884 hands, selling insurance policy 40410 hands, reducing 26313 hands, trading substantially reduced positions. As of May 17th, 19672 registered warehouse receipts decreased by 166. The warehouse receipt effective forecast 1190, reduced 491. With the expansion of the current premium, the resources can be reduced and the total number of forecasts has declined. In the past 5 weeks, the US market has fallen by 16.4%, Zheng cotton has dropped 11.1%, the domestic and foreign spreads have continued to expand, trade wars have been upgraded, and consumption is expected to decrease. This week, the bottom price has been cut by 579 yuan. Us disk: trade war escalation, market panic, fell sharply, July contract closed at 65.86 cents / pound on Friday, week fell 254 points, weekly K line has dropped 5 weeks, the bad has been basically digested, such as trade war is not good, technology needs to shake bottom. Continue to pay attention to the latest results of Sino US negotiations.

    On the spot. Trade wars escalated, industrial chains plunged into panic, domestic and foreign futures fell sharply, and Cheng cotton hit a 32 month low. Futures plunged, triggering some spot price spanactions, one cycle turned 6832. Gauze sales are at a standstill. Cotton purchasing is in a wait-and-see manner. The turnover has been recorded, and the average price has fallen by 1093 yuan per ton. Market quotation is relatively confusing, Xinjiang cotton main body quoted price drops 300-500 yuan / ton after 15000-15500 yuan / ton, fixed price quotation decline slightly in 100-200 yuan / ton, basically no deal. Customs import cotton hedging with the futures down, but less than the futures decline in the range of 300-400 yuan / ton, the price of the offer has changed little, there is no market price.

    Operation suggestion. The bad news of trade frictions has been digested for two weeks. This week, the bottom price has been cut by 579 yuan / ton, and the market is likely to enter the stage of concussion, or there will be a small overfall rebound. Pay close attention to weather, trade and war related information.
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