Sufficient Supply Of Cotton? Will Zheng Cotton Stop Again For The Two Time?

When the theme of Sino US economic and trade speculation has come to an end, cotton today unexpectedly falls to the limit. In fact, it is also expected that cotton will be easy to fall and difficult to rise in the short term under the pattern of adequate supply and low consumption.

"Misfortune, happiness depends, happiness, disaster." Who knows the extreme: it is not right. After the reconciliation between China and the United States was expected, cotton prices hit a bottom rebound, and Zheng cotton could resume the 15000 yuan / ton level before the Sino US mutual tariff increase. The result is contrary to expectations. In the good news of Sino US peace talks, the CF1909 main contract rebounded to a height of only 14300 yuan / ton, and after a few days of concussion, it came to a limit.

Cotton price rise or fall analysis should return to the fundamentals. Researchers from various agencies have been analyzing the supply and demand data of cotton market in a clear and consistent way, regardless of the accuracy of the data and the general direction. Basically, cotton supply is adequate on the basis of short-term cotton reserves, quota distribution and new cotton output. The latest cotton weekly report released by the national cotton market monitoring system showed that as of July 5th, the sales rate of new cotton in the whole country was 74.4% this year, down 8.9 percentage points compared with the same period last year, and about 1 million 570 thousand tons of new cotton were not sold in the whole country. The futures warehouse warehouse warehouse of Cheng cotton continued to decrease from 27 thousand tons to 633 thousand and 900 tons compared with last week.

According to the above data, cotton price rebound pressure is not small. Whether today's fall will lead to a two dip in cotton prices, there are different views among different professionals. Some believe that the current cotton price is already at the bottom of the market. Although there is a possibility of further exploration, there is little chance of a deep fall. For speculators, we can gradually build more positions. After all, cotton prices have been substantially lower than the cost of cotton production. The running time of prices below value will not last long. Some people believe that there are still many uncertainties in the Sino US trade negotiations. It is not clear yet. It is OK to confirm that the current price is the bottom. On the contrary, there is still a certain downward trend in cotton prices.

In the current macro-economic pressure and all kinds of news everywhere, there are reasons and opportunities for Zheng cotton's ups and downs. Investors should not be easy to participate in the analysis of the uncertainty of the ups and downs.