The Price Of Domestic And Foreign Cotton Futures Is Weakening, And The Price Is Rising.

Recently, the number of confirmed cases of new crown pneumonia in China has been decreasing, and the number of enterprises returning to work has been increasing. However, as the number of confirmed cases of new crown virus infection in Korea, Japan and Italy increased, the impact of the epidemic increased. Last Friday (February 21st), the ICE cotton main contract dropped 0.37 cents in May, and the settlement price was 69 cents / pound. On Monday, Zheng cotton opened lower, and the main contract CF2005 fell to 13000 yuan / ton again, eventually closing at 12935 yuan / ton, low to 12785 yuan / ton.

Domestic and foreign futures prices fell sharply, making the current price spreads rapidly expand, the spot price sales resources to improve the cost performance, part of the flat water basis fell to 13000 yuan / ton, a large number of traders offer warm sell significantly increased. At present, the Xinjiang ginning factory has not been restarted for a long time, and the professional warehouses within the territory are affected by the logistics and transportation. Therefore, the supply of goods from the mainland warehouse has become the main target of most enterprises.

About to enter March, part of Chen cotton warehouse receipt cancellation time is approaching, the market circulation spot or phased increase may be, although some enterprises have also incorporated Chen cotton into consideration, but their demand for cotton is based on the premise that the downstream product consumption is improving. According to feedback from some textile enterprises in some parts of the country, the start-up rate of enterprises has been rising slowly, but the stock of raw materials is abundant. Therefore, spot sales are obstructed at the demand side. The current low price lint is less attractive to buyers and less stimulating to the overall demand.

According to the current situation of domestic and foreign epidemic situation, there are still many uncertainties about the impact of this year's cotton market, and the low volatility situation will continue to maintain for a period of time. Today, in related cotton enterprises, there are still a large number of enterprises holding hedging and basic price points, and the pressure of follow-up supply is still to be released. The situation of high commercial inventories in China will continue to maintain. It will be difficult to realize the replenishment of the stocks by conventional spinning enterprises, and it will take some time for the textile enterprises, textile printing and dyeing enterprises to go back to work. Therefore, it is suggested that the operation of related enterprises should be based on stability, not blindly pursuing high profits and losing control and risk.