Review 2019 Cotton Market Ups And Downs, Consumption Recovery Or On The Way

In 2019, cotton city has gone through an extraordinary year. Sino US trade negotiation is a main line that affects the fluctuation of cotton market. The influence of every move may be higher than the actual supply and demand, which has a profound impact on every move of the consumer side and affects the whole cotton industry chain sentiment.

Looking back in 2019, cotton prices continued to fall by two thousand yuan per ton in 2018. Fortunately, there was a warning of the fall of cotton prices in 2018. After entering the second half of 2019, the Sino US trade superimposed on the domestic economy, and cotton prices finally stabilized, and entered short-term shocks. Traders said frankly: "as long as the market is stable, the cotton trade will be profitable, because the worst is 2018."

Looking back in 2019, with the further enlargement of the financial attributes of cotton, cotton trade enterprises realized more about the foresight of the combination of cotton futures and futures. Most traders began to carry out spot checks on cotton futures. Because of the fear of the ups and downs of the market, because of the fear that the effort once again failed, it increased the use of futures tools, more than one leg walk.

Looking back in 2019, traders were more cautious about hoarding goods, and cotton business inventories throughout the year narrowed all the way. Until the new year's cotton market came into operation, business inventories only increased. This may be in line with the anticipation of the economic and Sino US trade in the second half of the year. It may also weaken the influence of Sino US trade negotiations on market panic. In November 2019 cotton business inventories hit an annual high.

Looking back in 2019, we heard traders say, "better than 2018," and "go on well." Near the end of the year, we saw the PMI index rise, the growth rate of industrial added value rebounded, the first phase of the Sino US trade negotiations agreement signed, the difference between inside and outside cotton prices narrowed, and a cotton trader went to Xinjiang to order one thousand tons of new cotton. In fact, the market has been buying and selling all the time. Besides waiting for awe, we still need to wait.