Global Epidemic Spread Zheng Cotton Quotes Continue To "Dive"

Since late February, the new crown pneumonia epidemic in China has won a stage victory. The central bank has released a large amount of liquidity to protect the demand for funds for small and medium enterprises. Various government departments continue to introduce measures to deal with the epidemic (from tax to logistics, from capital to recovery). In the 3-4 month, China's textile and clothing production and export will usher in a small peak season, so cotton processing enterprises, traders, investors and other general judgement that Zheng cotton trend will be "V" shape reversal, the main contract will return to 13500 yuan / ton.

But contrary to expectations, in a bullish atmosphere, Zheng cotton recently launched a "diving" mode, the CF2005 contract price has fallen below the 12300 yuan / ton integer pass (low point to 12200 yuan / ton). The author believes that the cotton market still needs to change the space with time, and there will not be any conditions for deep down or soaring in the short term. The main contract will return to 13000-13500 yuan / ton in the middle of March.

In recent two days, Zheng cotton suddenly turned down because of the following outbreak: first, the outbreak of the new crown pneumonia outbreak in the whole world (South Korea, Japan, the United States, Italy, Iran and so on). In 2020, China's textile and clothing exports will become worse and worse, and the consumption of cotton will further decline. Two, the main force of ICE will be affected by the collapse of global financial markets, stock markets and commodity futures in recent days. The contract fell below 62 cents / pound and other important supporting positions, and the domestic spot price pressure was huge. Three, because of the bad factors such as the new crown pneumonia epidemic, the industry began to worry about the smooth implementation of the first stage trade agreement. Four, the overall resumption of the cotton textile factories and garment enterprises in February was not ideal. Small cotton mills, weaving factories and garment factories are slow to resume work due to many factors such as shortage of protective materials and limited mobility. Domestic cotton demand growth needs to be started.