The External Epidemic Has Improved And Cotton Prices Have Bottomed Out To Rebound.

WHO 14 said that the current European epidemic is mixed. New cases in Italy and Spain are slowly decreasing, but new cases are increasing in countries such as Turkey and Britain. Earlier, in order to prevent and control the epidemic, the United States has closed most of its economy. President Trump said on Monday that a plan to reopen the US economy is about to be completed. The optimism of the Trump administration or the relaxation of the related blockade measures, which has been overshadowed by worrying reports by JP Morgan and Wells Fargo, has led the US stock market to jump on Tuesday.

ICE cotton futures on Tuesday also rose due to strong stock market and weaker dollar, but the price increase was limited by demand. The main ICE7 cotton contract rose 0.11 cents, or 0.2%, and the settlement price was 53.18 cents / pound. After the opening of Zheng cotton in China, the main contract increased slightly, and then it was running concussion. Since last week's rally, Zheng cotton has recovered land lost slightly, and the main CF2009 contract is now hovering at 11300-11500 yuan / ton. Today, cotton prices are undervalued, relatively low in history, part of the bottom line funds are eager to try, coupled with the positive development of cotton planting in the northern hemisphere, the weather speculation and African locust plague come back or provide "opportunities", the rise of the external market will also provide some support for the domestic cotton market.

Although the spot purchase and sale at home and abroad have not improved significantly, part of the yarn enterprises have indicated that with the coming of the epidemic control point approaching, the plan will be appropriately increased. This week, the price of Xinjiang lint was raised at 11500-12000 yuan / ton, and Qingdao Port imported 12100-12400 yuan / ton of Brazil cotton, compared with the cost of textile enterprises before the festival. At present, the only problem is the digestion of the finished products of enterprises, and the difference of benefits between different spinning enterprises is relatively large. I believe that with the recovery of the domestic demand market, the profits of some enterprises will surely improve. Therefore, partial market will rebound or rebound.

In addition, it is noteworthy that the pessimistic consumer expectations of the epidemic are weakening, and the game between the two sides has increased significantly, and the probability of a rebound in the stage of bottoming is increasing. Of course, we should continue to pay attention to the impact of relevant news factors such as crude oil, epidemic situation, locust disaster, and weather changes in main producing countries on cotton prices.