Market Pressure Increases, Cotton Prices Will Be Adjusted In Short Or Short Term

Since the opening of the "two sessions", foreign concerns about Sino US relations and China's economy have risen to a new height. China is about to launch a strong concern over the implementation of the "national security law" in Hongkong. At the same time, the General Assembly failed to set goals for this year's economic growth and disappointed abroad. Generally speaking, the recent tit for tat attitude between China and the United States has made financial markets quite nervous and terrified, and whether China's economy can continue to surprise the market will also profoundly affect investor sentiment. Against this background, the overall performance of bulk commodities continues to be under pressure.

Up to now, the signing rate of US cotton has reached 117%, far higher than the average of 102% in the past five years. Last week, China was still a big buyer of American cotton and signed 153 thousand contracts for this year and 79 thousand contracts for next year. China's contract situation is good, but the shipment of US cotton has reached 2 million 360 thousand packs, far higher than the 1 million 198 thousand package of the same period last year and the average value of 998 thousand packages in the past five years.

Foreign analysts believe that China does not mention this year's economic goals and the potential Sino US tariff war is the main reason for investors to retreat. In addition, although China is still signing a large number of US cotton, the US cotton weekly signing volume has been significantly reduced in the past two weeks, and investors will have a wait-and-see attitude towards the market in the short term. Technically, the July contract is now 9 cents higher than the low point of early April this year. After six consecutive weeks of rising prices, cotton prices meet strong resistance at 60 cents, while the resistance of 62 cents will be greater, and short-term overbought tendency will be greater.