Zheng Cotton Touches Down Cotton Market To Face Challenges Again

In March 6th, when Russia refused to cut production at the OPEC meeting, Saudi Arabia, the main body of OPEC (OPEC), launched the oil price war on its own initiative. Affected by the impact, on Monday morning, oil and oil dropped sharply, and the oil pan fell 31%. Zheng cotton futures also can not escape bad luck, early morning jump to open low, the main force CF2005 contract has hit 12155 yuan / ton limit plate, the market pessimistic atmosphere is strong, the industrial chain upstream or downstream or once again usher in new challenges.

From February 28th's limit to 12000 yuan / ton pass, after only ten days, Zheng cotton opened a wide range of high-frequency vibration pattern. Recently, the new crown virus spread from Japan and South Korea to the Middle East, Europe, the United States and other places. WHO 8 said that the number of countries and regions affected by the new crown pneumonia epidemic outside China has reached 101. South Korea, Italy and Iran have more than 20 thousand confirmed diagnoses in 3 countries. The increasing epidemic has caused a great impact on the global economy. Some domestic market participants are worried that our textile and clothing exports will encounter the "cold spring". Zheng cotton keeps hitting the bottom and exploring the bottom, which will alarm the whole cotton industry against new risks. At present, the domestic epidemic has just improved, and the highway transportation business of cotton specialized warehouses in Xinjiang has gradually recovered, but the price has dropped rapidly, and the execution of orders for individual enterprises has been postponed. On the other hand, the downward trend of futures prices will trigger a reduction in spot tracking, and some cotton producers will face losses.

Since March, domestic textile enterprises continue to pick up again, and more enterprises feedback. At present, most of the products are ordered before the Spring Festival. After the resumption, the new order is very limited. If there is no change in demand side consumption, there will be no single business to do at the end of this month. Today, Zheng cotton has fallen rapidly, and the spot price spreads widened. This has stimulated the operation of a small number of price points, and the market is weakening due to the expectation of downstream demand. In the short term, the high cost performance resources provide support for promoting transactions.

Some cotton trade enterprises are worried that after the Spring Festival, new "floor prices" will continue to emerge, and the wait-and-see mentality is constantly being strengthened. If the traders' own profits are compressed, it will be even harder to make profits. Therefore, the upstream and downstream of the cotton industry chain will have to face new predicament, adjust the new direction and make new decisions.