Sino US Trade Consultation Positive Signal To Boost Cotton Market Rise

According to the price monitoring of the business community, the average price of lint 3128B lint in the domestic spot market was 13114 yuan / ton as of November 27, 2019, and the price was basically flat compared to last Wednesday (1120). Zheng cotton main contract 2001 contract price closing price 12830 yuan / ton, compared to this Monday prices rose 70 yuan / ton (closing price).

In the middle of November, due to trump's tough remarks, the market generally believed that China and the United States were unable to sign relevant trade agreements in the current year. However, domestic cotton production and quality were frustrated, and the material reserve bureau began to enter Xinjiang cotton, and spot prices rose steadily. Last week, domestic prices dropped after adjustment by international cotton prices. Last weekend, US officials said it was still possible to reach the first stage agreement before Christmas. China announced that it would seek to improve the protection of intellectual property rights. China and the United States both expressed the desire to end the trade war, and positive signals to boost the cotton market. In October, the number of foreign yarn arrived in Hong Kong was relatively large, and the volume of shipments was general. Therefore, the pressure on port inventory rose again. Due to the early downturn in cotton prices, although the prices in October were getting warmer, the recent cotton price shocks remained stable, and the domestic cotton yarn manufacturers' quotations were basically stable.

Business analysts believe that the market is concerned about the signing of the Sino US trade agreement, the international cotton prices may be lower, and the domestic stock market has a risk of falling.