Domestic And Foreign Futures Fell Sharply, Cotton Spot Price Dropped.

Last week (July 8-12), the USDA report increased global production and inventory, reduced consumption, and the US cotton sales figures were not optimistic. This bad impact on the US market plunged three years ago. Cotton price B index 14145 yuan / ton, compared with Zheng cotton futures CF1909 contract, spot premium 1045 yuan / ton, is not conducive to the warehouse receipt registration.

Futures. Affected by the US market crash, Zheng cotton fell, Zheng cotton's main contract CF1909 closed at 13100 yuan / ton on Friday, and fell 790 yuan / ton weekly, 2815524 hands traded, an increase of 760616 hands, an increase of 37%, holding 422124 hands, reducing 39110 hands, reducing 8.5%. As of July 12th closing, the top 20 seats, more than 221115 single hand, reduce 20791 hands, empty single 259609 hands, reduce 22032 hands, 38494 hands clearance, week 1241 hand reduction, disk face reappearance crash, short loss has reduced warehouse, clearance slightly reduced. As of the end of July 12th, buying 1194 sets of holding positions, reducing 15 hands, selling 47089 sets of insurance policies, reducing 9691 hands, profit or close positions. As of July 12th, 15517 registered warehouse receipts decreased by 331. The warehouse receipt effective forecast 627, reduced 508, the current expansion is not conducive to the warehouse receipt registration. After the resumption of the Sino US talks, there is a lack of good news that the market is looking forward to. The global economic environment is facing many difficulties, the consumption expectation is falling, the growth of new cotton is better and the output is increasing.

Us disk: poor export data, good growth of new cotton, global consumption is sluggish, Sino US negotiations did not expect good news, the US market plunged to a three year low, the main contract in December closed at 62.62 cents / pound, and fell 423 points on Friday. There is no good news in the market. More than 60 of this week's inertia falls. Continue to pay attention to the progress of Sino US trade war negotiations.

On the spot. Futures plunged, market confidence was hit, procurement was returned cautiously, market purchases were mainly rigid demand, futures slump triggered some spot price deals, and transaction prices fell with futures. The "double 28" machine price quoted by China's inner library is 13800-14000 yuan / ton, and the "double 28" hand picking cotton price is 14100-14200 yuan / ton, and the main transaction price of Xinjiang cotton is 14000-14200 yuan / ton interval. Customs clearance Brazil cotton 13800-14300 yuan / ton, the goods are better, other varieties are generally goods. The price of viscose substitute is relatively stable, polyester continues to callback.

Operation suggestion. The supply and demand fundamentals are bad, and the market lacks good news support. This week, the bottom price was lowered by 230 yuan / ton. After the fall, there was a rebound in technology.