Demand Rebounded Slowly And Cotton Prices Entered Adjustment Stage.

This week Zheng cotton futures continued to rise, the main CF2009 contract once rebounded to the highest point since April, 11955 yuan / ton, Xinjiang 3128B lint spot price also rose to 12000 yuan / ton. Spot prices rose, market mentality was fixed, and some speculators increased their willingness to do more. But today, Zheng cotton appears to fall slightly, where is the driving force for short-term cotton market trend?

Recently, many countries in Europe and the United States have relaxed anti epidemic control. Italy, Spain, Nigeria, Ohio and other places have begun to allow some people to return to work, and have opened construction sites, parks and libraries. Many German states have allowed more stores to open, and the British Prime Minister has announced a roadmap for lifting the blockade. With the emergence of a multi national epidemic, and the progress of the US vaccine research and development, the cotton market participants have significantly improved the demand recovery, creating a good environment for the recent rebound in cotton prices.

The panic brought about by the expansion of the epidemic is easing, but the heavy losses suffered by the cotton textile industry chain still make it difficult for many businesses to forget immediately. Due to the loss of foreign trade orders in the early days, many yarn and garment enterprises stalled, and production revenue suffered a great impact. Some foreign trade enterprises even went abroad to implement the export order. Although the recent rebound in cotton prices has been more concentrated in the market sentiment of investors, the return of cotton textile enterprises has not appeared in a large range. Short term cotton demand rebounded with the price rebound rhythm, and the slow recovery of downstream demand has dragged cotton prices to a certain level, which can not be crossed. Therefore, cotton prices are in a stage of adjustment. Later, with the improvement of the upstream and downstream industries, they will again provide support for the rebound of cotton prices.

From the above points, we can see that short term cotton prices do not yet have substantial rebound conditions, and suggest that people from all walks of life should pay more attention to it. At the same time, we need to pay close attention to the start-up of downstream textile enterprises, the follow up of new orders and the consumption of raw materials.