Cotton Futures Rebounded Spot And Up Limited

Last Friday, Zheng cotton futures closed down, ICE cotton also fell to nearly eight and a half years low value, the domestic and foreign cotton market is enveloped in the spread of the epidemic, fell to a low point for a while. Market participants lamented that when the long suffering cotton could get out of the haze. With the desire of the people, Zheng cotton rebounded yesterday. It opened up nearly 200 points in the early morning of the morning market, and the CF2005 contract reached a peak of 12715 yuan / ton in the morning. On Monday, the external market was also supported by the textile mill buying and risk appetite warming, and the US dollar declined to enhance optimism and rebounded. Compared with the rapid rebound of the futures market, cotton spot prices are not ideal.

Starting from Monday, a large number of cotton trade enterprises adjusted the sales base, converted the mainstream price to 12500-12800 yuan / ton according to the actual transaction, nearly two days, Zheng cotton futures rebounded, the rhythm of the bottom purchasing slowed down, and the buyer worried about the short-term spot digestible progress, and formed a greater resistance to the sale of lint cotton. According to feedback from Xinjiang ginning factory and professional warehouse, Xinjiang's lint processing has not yet been recovered, and most of the cotton mill's spot sales are facing losses, and production and processing are basically still at a standstill. The logistics of warehouses in northern and southern Xinjiang has not yet fully recovered, and most trains have been opened, but most of them have not yet returned to normal. As a result, Xinjiang cotton moved to the mainland rather deserted.

Recently, due to the rapid decline in international cotton prices, the difference between the inside and outside cotton prices has been widened, and the rotation of cotton reserves has also been temporarily suspended, and the buying and selling channels in the spot market have been further narrowed. Although the difference between inside and outside cotton prices has been widened, the advantage of imported cotton spot in Qingdao port and Zhangjiagang is less than that in domestic stock market. The sale of Brazil cotton in Hong Kong is 200-400 yuan / ton higher than Xinjiang cotton, and only the price of imported cotton and low quality imported cotton in India is lower than that in Xinjiang cotton. The main reason is that the trade volume of imported cotton bases is small, and port traders are mostly unilateral fixed price operations, and there are difficulties in selling at low prices. More cotton traders can only temporarily wait and see, and wait for the price to rise again.

At present, the demand recovery of downstream textile enterprises is still slow. After the holiday, the resumed enterprises are cautious about the market trend in the two quarter, and will have low willingness to replenish raw materials in the short term. The market's growing doubts about whether the epidemic is expanding around the world will increase the doubts about domestic export orders. Therefore, late spot prices continue to rise or face more twists and turns.