The Situation Is Slowing Down And Cotton Prices Are Stable.

Last week (February 10-14), under the correct leadership of the Party Central Committee and through the joint efforts of the whole nation, the spread of the new crown pneumonia epidemic has been effectively controlled, and market confidence has gradually recovered and cotton prices have stabilized.

Starting in 10 (Monday) February, textile enterprises in Jiangsu, Shandong, Fujian and other regions with relatively low epidemic situation resumed their work in succession, but the progress was much slower than that in normal years. At the same time, due to the need for epidemic prevention, workers are not in place, and most of the resumed enterprises fail to fully produce capacity. In addition, there are fewer warehouses, more logistics, and less cotton spot. Last week, the maximum price limit of 13715 yuan / ton decreased by 420 yuan / ton compared with the previous week. Cotton substitute polyester 6600 yuan / ton, weekly drop 250 yuan / ton; viscose 9600 yuan / ton, low consolidation. Cotton price CNCottonB index price 13358 yuan / ton, week fell 47 yuan / ton, compared with Zheng cotton futures CF2005 contract, spot premium 328 yuan / ton, expand 58 yuan / ton.

Futures. As the epidemic slowed down, the cotton mills resumed work in succession, the market sentiment gradually stabilized, and Zheng cotton fluctuated slightly. The main contract CF2005 closed at 13030 yuan / ton last Friday, and the week fell 105 yuan / ton. The fluctuation of the market was small, the money making effect was low, the enthusiasm of fund participation declined, and the turnover and positions were significantly reduced. As the cotton mill resumed work, the futures market stabilized and the insurance increased. Last Friday, it closed 11755 stores, kept 4280 hands, sold 99484 guarantees, reduced 2113 hands, continued to decrease, and began to stabilize after the crash. Dan Pingcang gained profits. In addition, the registered warehouse receipts continued to increase, but the speed decreased, the total amount reached 37385, the week increased by 317, the forecast of 5160, a decrease of 260 last week, a slight decrease. With reduced consumption and slow spot sales, the sale of registered warehouse receipts is a good selling way for cotton enterprises. At present, the post road cotton mill has gradually resumed work, the epidemic expansion momentum has been effectively controlled, cotton consumption will start slowly, the disk price should be consolidated and picked up, the CF2005 rate will be consolidated in the range of 13000-13500 yuan / ton, the recent epidemic trend and Sino US negotiation will have an impact on the disk, so we need to pay close attention to it.

Us disk: China's massive cancellation of the US cotton contract has increased fears and fears of falling prices. The contract closed last Friday at 67.46 cents / pound, down 33 points. Technically, there is a 60 day moving average suppression, the following 20 weeks average support, such as China's epidemic control gradually improved, the recent interval consolidation probability is larger.

On the spot. The cotton mills in the less epidemic areas have resumed work in succession. However, affected by epidemic prevention, the staff are not in place enough, and there are fewer warehouses and less logistics. The cotton mills in the cotton mill are generally full of stocks, and there is little demand for procurement. As warehousing resumed and transportation gradually improved, spot trading began or started this week.

Acquisition of new cotton. As of February 14th, 959 enterprises in the country declared 5 million 30 thousand tons of public inspection, increased 10 thousand tons per week, increased 3 enterprises, and 4 million 880 thousand enterprises of 808 enterprises in Xinjiang, 4 million 880 thousand tons of public inspection, and 6000 tons of household, 151 tons of public inspection 150 thousand tons in the mainland, and less than 1000 tons per household.

Operation suggestion. Last week, factories in the less epidemic areas began to resume work gradually, but it still takes time for the whole country to resume production. The market is optimistic. The cotton consumption has been reduced by 500 thousand tons this year. The epidemic situation has been controlled and consumption has gradually resumed. At the same time, China and the United States have signed agreements in an orderly manner, and the recent upward trend of regional alignment is more likely.