Cotton Prices Rebounded And Internal And External Spreads Narrowed

This week, the resumption of domestic enterprises continued to pick up in an orderly way, and the production of enterprises gradually returned to normal. But last week, the deep fall of US stocks and commodities in the international market left domestic practitioners with a lingering fear of whether the international epidemic could be effectively controlled and the impact on its economy remained more worrying. The wait and see mood was strong. Even though Zheng cotton had rebounded in the past two days, the actual price of cotton enterprises in futures actually remained unchanged. More cautious, the transaction is not heavy. The actual price in the spot market rebounded. China's cotton price index (CC Index3128B) today is 12986 yuan / ton, up 99 yuan / ton yesterday.

Entering the March, the US dollar discount rate of RMB was 7.0012, which was 0.1167 higher than that of February, and 71.4 yuan / pound as an example. The implementation of the March exchange rate increased by 203 yuan / ton than the February exchange rate, and the change of exchange rate was beneficial to narrowing the difference between the inside and outside cotton prices. Monday ICE cotton settlement price 63.38 cents / pound, compared with last Friday rose 1.89 cents / pound, today continued to float red, bold guess if today Cotlook A index rose 1-2 cents, or 71.4-72.4 cents / pound, 1% tariff discount price (excluding port fee) 12133-12302 yuan / ton. The price difference between today's CC Index3128B and China's cotton price index is 12986 yuan / ton, the price difference is 853-684 yuan / ton, referring to other spot prices, if the price difference is narrowed to 800 yuan / ton, the national cotton reserves will be reopened, which will boost the confidence of domestic cotton enterprises.