Can The Reserve Price Of Cotton Reserve Bottom Price Increase The Market Heat?

Introducer

As a market bonus, national cotton reserves are favored by downstream textile companies. Their turnover can also reflect the mentality of the market to a certain extent. Can the price reduction of the national cotton store sale this week increase the market heat?

Last week, Zheng cotton futures stopped again, which once again raised concerns about the late cotton market. In this era of cost-effective, in order to achieve low cost, high profits, but also for the low threshold to compete for the market, the use of national cotton processing has become the first choice for many textile enterprises. Below, Chuang Chuang information combs the market under the State Cotton store.

In the early July, the Sino US meeting in Osaka brought a good macro effect to the domestic commodity market. Although the boost to cotton market was not as strong as expected, the overall effect could be immediate.

Among them, the most obvious is the recovery rate of the national cotton store. The mentality of this industry has also begun to improve. However, Zheng cotton, which once again turned sharply, let the textile enterprises begin to hesitate and continue to replenishment. Let traders start to worry about whether they will continue to search the bottom, let the ginning factory have a bit of trembling, and whether the losses will continue to increase. Once again, the market is enveloped in a cloud. Is cotton city beginning to go to the bottomless pit?

First of all, from last week's turnover rate, although there has been a decline, but basically 80% to 90% range of floating, that is to say, there are still a large number of enterprises in the procurement. According to the latest survey of purchasing intention of enterprises in the national monitoring system, in early July, 56.6% of the enterprises were prepared to purchase cotton, 37.3% of them took a wait-and-see attitude, and 6% did not plan to purchase cotton.

Second, the Sino US economic and trade consultations reacted positively. In July 11th, a spokesman for the Ministry of Commerce said at a press conference that the economic and trade teams of China and the United States would resume economic and trade consultations on the basis of equality and mutual respect in accordance with the requirements of the two heads of state Osaka meeting. Recently, China has made a strong statement and will resume the purchase of US agricultural products. The United States will also lift restrictions on HUAWEI. Although the two sides face certain conflicts of interest, once the appropriate solution is found, the agreement between China and the United States will soon be reached.

Under the guidance of news, the market may turn for the better. Moreover, from the perspective of futures technical indicators, the low support of Zheng cotton is still strong, and some single speculators still have low buying probability, and the continuous outflow of warehouse receipts will also bring hope for the future market. At present, Zheng cotton is not empty, and it reflects the cautious attitude of investors. According to Chuang Chuang information, once the macro-economic benefits appear, or with the improvement of fundamentals, the selling price will be lowered or stimulated to buy, but the periphery needs to create a moderate atmosphere. Therefore, we need to continue to pay attention to the progress of Sino US economic and trade consultations.