Round The Transaction Restart The High Turnover Rate, Cotton Futures Market Difficult To Block Down

According to the circular issued by the Ministry of Finance and the Ministry of finance of People's Republic of China (No. third in 2019) issued by the State Grain and Material Reserve Bureau in November 14, 2019, it is stipulated in the circular that when the cotton price difference between inside and outside is reduced to less than 800 yuan / ton, the transaction will be restarted. In March 3rd, the difference between domestic and foreign cotton prices dropped to 614 yuan / ton. On the 4 day, the new territories cotton was restarted in the morning. The purchase volume was 15 thousand tons on the same day, and the turnover volume was 14 thousand and 300 tons, with a turnover ratio of 95%. The average transaction price was 13549. Compared with the previous trading day (February 28th), it increased by 162 yuan / ton, and the turnover was positive.

On the evening of 3 Beijing time, the Fed lowered its interest rate by 50 basis points to the 1.0%-1.25% interval. In this rally, the US stocks briefly rose, but then fell back to green, and finally dropped sharply. The three major indexes fell nearly 3%. On the 3 day, the cotton market in ICE fell all the way, and the settlement price in May was 62.77 cents, down 61 points. Driven by the international market, the 4 day Zheng cotton was opened at a low price. As at the end of the afternoon, the price of zhengmian main contract was 005 yuan 12471 yuan / ton, down 0.9% from yesterday.

On the whole, although the sudden action of the Fed has played a short boost to the market, on the other hand, the unexpected early cut in interest rates also seemed to clarify its concerns about the economic outlook. In addition, G-7 finance ministers and central bank governors held a telephone conference and issued a joint statement. The statement did not explicitly mention the specific policies to be adopted by all countries. The content of the statement is far below market expectations, and it can not cushion market concerns about the impact of the epidemic on the economy.

Although the textile enterprises in the near future started to increase, the procurement of raw materials was not positive. At the same time, under the condition of domestic and foreign market downturn, Xinjiang cotton's reentry started to provide a solid backing for enterprises and become the best choice for enterprises to deal with risks.