Sino US Trade War To Upgrade Again, Zheng Cotton Broke Down

In the evening of August 23rd, China announced that, in response to the announcement of the US government's import of about $300 billion from China, 10% of its duties were imposed on 10% tariffs. The two batches were implemented in September 1, 2019 and December 15th. The Chinese side was forced to take counteraction measures to impose tariffs of 10% or 5% on 5078 items of origin and 75 billion dollars in products originating in the United States. Two batches were implemented in September 1, 2019 and December 15th. Affected by this news, the three major stock index stocks suffered heavy losses, Dow fell more than 600 points, and Nasdaq fell 3%. All the 11 major sectors of the S & P 500 have been wiped out. Energy shares and technology stocks declined the most, falling by more than 3%.

Following that, the US trade representative's office issued a statement on August 24th, saying that the US tariff will increase from 25% to 30% for the US $250 billion worth of imports from October 1st, and on the scheduled date, the tariff on Chinese imports of about 300 billion US dollars will increase from 10% to 15%. Sino US trade relations have escalated again, and the pessimistic atmosphere of the market has been increasing.

Today, Zheng cotton futures opened a straight line down, CF909 contract opened one minute decisively fell to the previous 12000 yuan / ton key position, fell to 11735 yuan / ton, or 3.85%. The deadline has dropped to a new low of 11720 yuan / ton, which is only one step away from the price limit. Market investors seem to have prepared for the fall this weekend.

New cotton market is approaching, Zheng cotton continues to fall sharply, once again let the ginning enterprises whether or not to pick and sell on schedule. At the same time, some downstream textile enterprises timely adjust the procurement strategy, reduce the recent orders, wait and see further trends. For many trading enterprises, at present, it can only be "anxious". The lint in hand seems to be "hot yam". Seeing that the price is going down step by step, the loss is increasing, but it can not be sold at all. Today, the trend of Sino US trade relations is still a major factor affecting the direction of cotton market. Every time China and the United States speak on tariff increases, they directly guide the operation strategy of cotton enterprises.

With the increasing risk aversion of enterprises, the process of lint digestion has slowed down, and the contradiction between supply and demand imbalance has been enlarged. Although the valuation of cotton price is low, it is suggested that investors should be cautious about it, and the external environment will be oppressed. It is difficult to reverse the short-term price of cotton, and we need to pay close attention to the relevant news of Sino US trade and the guidance of relevant policies.