The G20 Summit Between China And The US Will Be Warming Up In Cotton Market.

Yesterday, domestic and foreign cotton futures rose, including the ICE US cotton main contract in December, because investors optimistic expectations Sino US trade negotiations, hit a week high; zhengmian main contract CF1909 night contract opened 13845 yuan / ton, the highest price exceeded 14000 yuan / ton, reaching 14145 yuan / ton, or 1.86%.

Because of the continued weakening of the previous market, the yarn stock of spinning enterprises is high. After the compression of raw material reserves and the digestion of finished products inventory, most of the textile enterprises' raw cotton inventory has dropped to a relatively low level. According to the survey, the use of raw cotton stocks in some spinning enterprises has been less than one month, and the stock of small enterprises has even been maintained for a week. Especially after the leaders exchanged telephone calls last week, the pessimism of the market has been gradually restored, and the rebound in futures prices has injected the market into a strong heart.

At present, Xinjiang cotton spot basis resource has moved up about 300 yuan / ton compared with last week's price. The southern mainstream 3128 level hand picked cotton price fixing mainstream report is about 14300 yuan / ton, although the current market price is still upside down compared with the cost, but the loss is reduced, alleviating the pressure of some enterprises. Due to the promotion of the mentality of buying or selling, the recent increase in the price of cotton mill enquiries has been a great change in the market for some companies.

In addition, the import cotton market also showed signs of recovery. Some of the port businesses in the early days were waiting to wait and see. With the recent small business mentality, cotton operators' enthusiasm has picked up. Although the industry generally believes that Sino US trade disputes can hardly be solved in a short time, some cotton traders hope to seize the recent macro message and promote the stock as soon as possible, so as to guard against the risk shock. According to the investigation of Qingdao port and Zhangjiagang, the current port is mainly Brazil cotton and India cotton. The mainstream offer price is 14500 yuan / ton, 14200 yuan / ton, lower than last week's low end quotation, the center of gravity moves upward 100-200 yuan / ton.

Earlier, according to Peng Bo, a person familiar with the matter said that the United States was willing to suspend tariffs on Chinese products for the next round of $300 billion. Meanwhile, Beijing and Washington are preparing for the resumption of trade negotiations. The two sides discussed how to demonstrate the resumption of trade negotiations to their respective countries, which is a victory. People familiar with the matter also revealed that the United States temporarily delayed the introduction of new tariffs, otherwise Beijing would not agree to the meeting.

The from June 28th to 29th G20 summit will be held in Osaka, Japan. At present, China and the United States will meet in accordance with previous arrangements, which will break the stalemate in Sino US trade negotiations, or push forward the signing of the Sino US trade agreement. Of course, we must seize the good atmosphere of this meeting and defend the recurrence of conflicts. There is still much uncertainty about whether China's $300 billion commodity tariffs will be added. It is suggested that at present, cotton enterprises can lock in profit margins, actively improve strategies, reduce losses and strive for maximum returns.