Zheng Cotton Once Again Limit Cotton Spot Difficult To Stop.

According to the business statistics, the average price of the domestic lint spot market was 12236 yuan / ton as of March 19th, down 6.67% from the beginning of the year, down 21.60% from the same month. Recently, the cotton futures contract was hot, and the average price remained strong for several days. On Wednesday, domestic cotton brew for one day without a big drop. Good weather did not last long, zhengmian down, the spot down mode restart. In March 19th, Zheng cotton main contract 2005 contract price limit, closing price 11095 yuan / ton, compared with the previous trading day price fell 4.02%.

From a macro level, the epidemic situation is not to be ignored in the global situation. Many countries have taken measures to close the city and close the border. The decline in trade activity is positive, and the market demand for cotton is expected to fall again. The market has chosen to avoid risks. The US stock market has plummeted and there has been a lot of fuses. Before the effective control of the epidemic, the market is worried or difficult to dissipate. The United States Department of agriculture has indicated that the area will be reduced in the previous cotton planting projections, and the cotton price will drop sharply with the impact of the epidemic, and the planting area of the United States and cotton will be further reduced. However, the market for textiles is also affected. India expects textile exports to drop by 40% this year. Although domestic enterprises are doing well, the closure of orders has been shrunk since the outbreak of outbreaks. Although the price of cotton has fallen sharply, the shipment is not fast enough.

The fall in cotton prices at this stage is caused by market panic. The cotton futures fell sharply with the financial market. In March 19th, the domestic current difference was as high as 1141 yuan / ton. From the current table, we can see that the gap between futures is widening and the gap will be narrowed after reaching the peak value. In anticipation of continued downward trend in futures, the possibility of a substantial drop in spot prices is relatively high in the near future.

The price of cotton has been set down and how long will the price of the yarn last? Since most of the enterprises returned to work in February 10th, domestic cotton spot has dropped nearly 1200 yuan / ton, but cotton yarn is not relaxed. It seems that time has stopped at the end of last year. The reasons are as follows: on the one hand, the spinning enterprises were stocked years ago, the orders were reduced after the year, and the cost was difficult to digest; on the other hand, the market demand was mediocre, the enquiries were few, no transactions were made, and it was difficult to price them. But at present, cotton prices have no rebound intention, supporting prices are slim by cost. The cotton yarn inventory of colleagues cotton textile enterprises in Shandong has accumulated to more than 1 months, and some of the late start businesses have more than 20 days' stock. The company is already giving up the goods, and the next step is to loose the market. It is expected that the short-term yarn price will fall.

Cotton prices slowly recovered from last October to mid January, thanks to the good development of Sino US trade and the positive stimulation of the signing of the trade agreement. But in the ten days of March, cotton prices fell back to October levels or even lower. Business analysts believe that the outbreak of the epidemic on a global scale has led to a sharp fall in the stock market and crude oil, and the market is unstable.