What Factors Induce Zheng Cotton To Rebound Sharply?

In April 22nd, Zheng cotton's contract set off a "V" font reversal. In the afternoon, the disk performance was relatively strong, and continued to recover important barriers. Today, Zheng cotton continues to go higher and higher, and the CF2009 contract goes to war with another 12000 yuan / ton. From the increasing volume and position of Zheng cotton, the probability of capital going into the market and increasing speculation is high. With the sharp rebound of Zheng cotton, traders' and panic's disquiet in the cotton and Canadian enterprises rapidly subsided, and the phenomenon of returning funds was suddenly stopped.

What causes the sudden collapse of Zheng cotton since the middle of April? There are various kinds of speculation and speculation in the market. I believe that the following three factors will contribute to the rebound of Zheng cotton.

First, in April 16th, the relevant staff of the State Council joint defense joint control mechanism held a press conference that, as of April 14th, the average operating rate of Industrial Enterprises above Designated Size reached 99%, and the rate of duplicate posts was 94%. With the rapid development of domestic epidemic prevention and control, production, sales, logistics and other links have been fully restored, coupled with a series of measures of government departments to promote foreign trade and steady production, the number and confidence of cotton textile, clothing and foreign trade enterprises have been continuously restored.

Second, not only agricultural products, metals, nonferrous metals and black goods are all red flags. Europe and the United States will press the "restart button" in May and nearly two days of crude oil futures "open up" and other favorable direct pull. In April 23rd, most of the domestic futures varieties showed "high and high", and Zheng cotton rebounded sharply in the frying of funds.

Third, the central bank has continuously adopted the "quasi reduction of interest rates" to release liquidity. Capital has entered the real economy (especially small and micro enterprises), commodity futures markets and stock debt markets. In the first quarter of this year, the central bank used a variety of tools to guide the continuous reduction of social financing costs and maintain a reasonable level of liquidity. According to the report card issued by the central bank in April 16th, both the epidemic situation and the industries affected by the epidemic were strongly supported by loans. In addition, more medium and long-term loans go to the manufacturing, infrastructure and service sectors.