The Impact Of The Epidemic Intensified, Zhengmian Again Down.

Recently, the new crown pneumonia epidemic continues to spread around the world, and the market is worried about it. The number of confirmed cases in South Korea, Japan, Iran and Italy is increasing. The WHO has also issued a warning to remind countries all over the world to make preventive preparations. Affected by this, the US Dow Jones index fell 1000 points yesterday, and commodity futures also suffered heavy losses, including cotton futures.

On Thursday, the US cotton main force's May contract fell more than 4% to a low of more than four months, closing to 62.50 cents / pound at the closing price of ICE. The contract is trading at 62.47-65.47 cents, the lowest since last October 11th. The external market has fallen sharply, and the domestic price has also slowed down. Early today, Zheng cotton jumped into the air and opened low, eventually down to a closed down. The main CF2005 contract closed at 12185 yuan / ton, down 510 yuan / ton, or 4.02%. Before the Spring Festival, the CF2005 contract once rose to more than 14000 yuan / ton, and now it has dropped 2000 points, which shocked many cotton enterprises. Only a month after the recovery of the festival, Zheng cotton appeared on the 2 limit (in February 3rd and February 28th) and the 1 time limit (February 17th).


Since late February, though the number of textile enterprises has been greatly improved, the digestion of cotton is not rational. After the Spring Festival, the number of new orders was less. Recently, the epidemic situation of imported important textile and garment importing countries has increased, and domestic enterprises' concerns about subsequent orders have increased again, or short term demand has obviously weakened. According to some traders feedback, the recent decline in futures prices, although stimulating some point price resources transactions, but from the actual number of transactions, it is still not optimistic. Most of the small and medium-sized enterprises outside the Qingdao port cotton market do not go out of stock during the week. The turnover of large enterprises is less than half of that.


At present, the price of Zheng cotton has dropped sharply, far below its cost of lint processing. Some investors believe that the opportunity of bottom hunting is coming; others believe that the fall has not stopped. Short term epidemic development is the key factor affecting the mentality of the industry. In addition, the internal and external spreads have expanded rapidly, and it has exceeded the fusing value for two consecutive days. Whether the above factors continue to have a new impact on cotton price operation still need to be followed closely.