In Early May, Cotton Prices Jumped First And Then Rose.

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According to business statistics, as of May 11th, the average price of the domestic lint spot market was 11581 yuan / ton, up 0.59% from the beginning of the month, down 25.66% from the same period last year. During the May 1st period, due to the comments made by the US side, the market was very worried about Sino US trade relations and ICE cotton fell sharply. After the domestic lint holiday, the main force of zhengmian fell below the second level. The vice premier of China and the US trade negotiator called to reverse the situation, and the US cotton export weekly added more assists, and cotton prices rose.

During the May 1 period, US President Trump threatened to impose tariffs on Chinese products. May 1st -5 ICE cotton fell three days in a row, the main contract in July fell from 57.33 cents to 53.58 cents, or 6.5%. In May 6th, Zheng cotton main force reported a minimum price of 11170 yuan / ton, a decrease of 2.20 yuan / ton on that day, and the spot average price was the lowest 11400 yuan / ton, or 0.98%. As can be seen from the current table, Zheng cotton fell sharply only on the first working day after the holiday, and then pulled up sharply. Most of the cash is sandwiched between the recent contract and the main contract, and the spot fluctuation is small, around the 11500 yuan / ton, the upper and lower 150 yuan / ton adjustment. The downlink did not last long, and the turning point soon came.

According to public reports, the Sino US economic and trade consultative meeting between China and the United States in May 8th reached the first time after the signing of the first stage economic and trade agreement. The two sides said they should strengthen cooperation in macroeconomic and public health, and strive to create favorable atmosphere and conditions for the implementation of the first stage economic and trade agreement between China and the United States, and promote positive results. The two sides agreed to maintain communication and coordination. Before the worries dissipated, the short time was filled, and the ICE cotton continued to rise.

On the other hand, the US cotton export weekly data are considerable, and China's contract has increased significantly. On the 17-23 day of April 2020, the net contracted volume of US cotton in 2019/20 was 98 thousand and 600 tons; in April 2020, the net signing amount was 84 thousand tons in April 2020, and China added 95 thousand and 800 tons and 49 thousand and 300 tons respectively in two weeks.

Domestic textile exports are recovering and demand is rising slowly. According to the latest statistics of the General Administration of Customs of China, in April 2020, the export volume of textiles and clothing was 21 billion 361 million US dollars, an increase of 38.43%, an increase of 9.77% over the same period last year. Among them, exports of textiles (including textiles, yarns, fabrics and articles) amounted to US $14 billion 620 million 700 thousand, an increase of 49.36% over the same period last year. Exports of garments (including garments and accessories) were US $6 billion 739 million 900 thousand, down 30.31% from the same period last year.

Cotton yarn, by the end of April, although India textile part of the resumption of work, yarn started low, but downstream demand is also low, yarn prices may drop. Cotton prices in India have dropped sharply due to insufficient turnover. Analysts believe that cotton prices in India may still fall by about 10%. Pakistan textile factory has been started, and the government has allowed some textile factories to process export orders, and cotton yarn has warmed up. Last week, the price of 30 combed yarn in Pakistan increased by 3.23%, and the export price of Pakistan yarn increased by 2.75%. As of May 11th, the average price of 32 ring spun pure cotton yarn in Shandong area was 21250 yuan / ton, which was 2.86% lower than the beginning of the month, and the downstream demand was weak. Most of the market was in a deadlock without price. Some companies cut their selling price sharply after the holidays. Some enterprises also extended their holidays in order to reduce costs, while foreign textiles resumed their jobs. Hard.

With the gradual easing of foreign blockade and the easing of Sino US relations, textile production and marketing and cotton demand are showing signs of improvement. China's massive signing of US cotton has made a good start for the textile industry's slow recovery. Business analysts believe that the spot fluctuated around 15000 yuan / ton, and a small number of transactions were held. Look at the cotton futures, although the process is twists and turns, the overall price rise. The slowdown in Sino US trade relations is a positive sign, and demand is getting warmer. Cotton prices are expected to show upward trend.