Zheng Cotton Main Contract Fell Below 13000 Yuan / Ton Cotton City Ushered In "Summer Winter"

After a few days in late May, a few days of trading saw the groundwork (CF1909 around 13500 yuan / ton consolidation), in June 3rd, Zheng cotton "black Monday" came again as usual, the main contract opened 13000 yuan / ton, the disk was sealed down, although the bull repeatedly tried to protect the plate, the price limit board was opened many times, but it is obvious that the confidence of the whole cotton market collapsed, and most of the cotton enterprises had no intention to fight, reappearing the surface of empty encirclement and suppression.

Some institutions and cotton related enterprises believe that if they can't keep 12970 yuan / ton, then they can only defend themselves at 12500 yuan / ton and 12200 yuan / ton, and cotton city will usher in the "cold winter in summer". Not only the cotton mill and traders' deficit will continue to expand, but also the price of cotton will fluctuate.

Compared with last week, the cotton market has made some changes, which is probably the reason for triggering the Zheng cotton disk "shrivelling", and not discussing the shrinking of downstream gauze orders and accelerating the pfer to Southeast Asia.

First, the expected increase in trade frictions between China and the United States. The United States enters the "countdown" to impose tariffs on imports of 325 billion US dollars.

USTR will issue a notice next week in the federal Gazette to extend the time when certain products from China export to the United States until June 15th, and then the tariffs will increase from 10% to 25%, that is, a 15 day buffer period.

Since June 1, 2019, China has imposed tariffs of 25%, 20% and 10% on the list of imported goods originating in the United States of about US $60 billion (5% duty is added to the commodities that are subject to 5% tariff before added).

Some agencies believe that the white paper on China's position on Sino US economic and trade consultations pointed out that the failure of negotiations was responsible in the United States, and the US side had three times to go back on its side, and China's four major positions were clear.

Therefore, the possibility of short-term negotiations between China and the United States, concessions and agreement is negligible.

Two, last week, the US stock market, bond market and financial market plummeted, and then impacted on the real economy and commodity market, and cotton was not spared.

Similarly, other stock markets in Germany, France and Europe are also "deep green". Today, domestic crude oil, PTA, asphalt, corn, rubber, cotton and other futures varieties should fall, but just like other varieties, cotton has become a "sharp pioneer" under the pressure of supply and demand, fine weather and so on.