Sino US Trade And Cotton Textile Market Observation (7.29-8.2)

July 29th -8 1, the domestic and foreign futures market was more stable than last week, but everything is "calm before the storm". This week's last trading day ushered in a price dive, and cotton and cotton yarn futures fell one after another. The biggest drop in real time was nearly 4%. On the day of August 1st, the three major indexes of the New York stock market fell, the Dow Jones Industrial Average fell 1.05%, and the S & P 500 stock index dropped 0.90%, while the Nasdaq composite index fell 0.79%.

A week's highlights

1. Consultation progress

On the 30-31 th of July, the Sino US economic and trade team held the twelfth round of high-level consultation on Sino US trade and economic cooperation in Shanghai. The two sides have conducted frank, efficient and constructive in-depth exchanges on major issues of common concern in the field of economic and trade, in accordance with the important consensus of the two heads of state meeting in Osaka. The two sides also discussed the need for the Chinese side to increase procurement of agricultural products from the United States and the United States to create favorable conditions for procurement according to domestic needs. The next round of economic and trade consultations in the United States will be held in September.

2, focusing tariffs

On the morning of August 2nd in Beijing, when the US trade delegation just returned from Shanghai, Trump announced that during the negotiations with China, the United States unilaterally raised tariffs and imposed additional tariffs of 10% on the remaining 300 billion of China's exports to the United States, which was implemented in September 1, 2019, and indicated that 10% was only a "small" increase in taxes, and the existing 250 billion dollar plus 25% policy continued. At the same time, he also expressed his hope to continue negotiations with China, and the two countries will have a bright future. For the threat of the US side, Wang Yi, State Councilor and Minister of foreign affairs, said that raising tariffs is not the right way to solve economic and trade frictions.

Market price dynamics

This week, from the spot index situation, cotton and cotton yarn futures contracts at home and abroad showed a stable trend and then a downward trend. The price of domestic cotton main contract (CF1909) in August 2nd was 13044 yuan / ton, down 291 yuan / ton compared with the same period last week. In the US cotton futures (ICE1912), the settlement price is 62.37 cents / pound in August 1st. Zhengzhou cotton yarn main contract (CY2001) July 26th settlement price of 21291 yuan / ton, compared with the same period last week fell 219 yuan. From the domestic spot market, in August 1st, the domestic 3128B cotton price index was 13450 yuan / ton, which fell significantly compared with the previous few days. The 32 cotton combed yarn price index (CY C32S) was 20800 yuan / ton, and the performance was not obvious. Judging from the situation of cotton reserve transactions, the bottom price of this week was 13288 yuan / ton, up 61 yuan / ton compared with the previous week, and the turnover rate has declined. The average price of the transaction is about 12500 yuan / ton, slightly lower than that of last week.

　　 At present, market confidence is still insufficient, and the peak season is expected to weaken. But with the development of Sino US trade war for a year, the market has gradually declined. Throughout the past, the tariff plan has been repeating, and the two sides are still in constant communication. With the start of orders in autumn and winter, the downstream orders will gradually increase, and enterprises should still have expectations for the arrival of "golden nine silver ten".