Sino US Consultations May Delay Zheng Cotton'S Price Decline

According to the price monitoring of business, the average price of 3128B lint in domestic spot market was 13058 yuan / ton as of November 7, 2019, which was 0.32% higher than that on Monday (11.4).

Although the domestic weather has affected the output of new cotton or has been reduced, manufacturers rushed to buy seed cotton to make domestic spot prices continue to rise. However, the problem of consumption decline has not been eradicated, and the main force of zhengmian is difficult to break through. Recently, it has been shaking at 12900-13200 yuan / ton. It is reported that China and the United States may have to wait until December to sign the agreement, and the US traders predict that there will be no change in US cotton output, and that the forecast end of October will be 7 million bales. Zheng cotton prices fell sharply. In November 7th, the 2001 contract of Zheng cotton main contract closed at 12920 yuan / ton, down 1.30% compared with the previous transaction price.

Business association analysis is that the market is concerned about the signing of Sino US trade agreement, and the enthusiasm for domestic cotton prices continued to rise caused by the reduction of production may be extinguished, and the cotton price volatility is expected to fall.