More Cautious Or Long-Term Shocks? Cotton Trend In June

In May 20, 2020, the Zhangjiagang cotton chamber of Commerce held the fourth presidents meeting at the Zhangjiagang Federation of industry and Commerce entrepreneurs. The conference focused on the cotton textile situation under the epidemic situation and the development of future market.

Ma Wensheng, chairman of Zhangjiagang cotton trade association and chairman of new lake futures, pointed out that the biggest impact on the futures industry since the 93 years of operation, China encountered 4 waves of shock, stock market, overseas epidemic, Saudi Arabia crude oil. In the short term, there are some restraining measures, which are low in the long run, and some risks can be circumvented by means such as options. The more this time, the more important is the importance of futures derivatives to enterprises, and the moat of enterprises.

Zhu Gensheng, vice president and Secretary General of Zhangjiagang cotton chamber of Commerce and general manager of Regal International, introduced the situation in India, India epidemic situation and so on, and it is still spreading. The mills basically stopped. It was difficult to get back to work. The workers basically went home, and it was difficult to return to the factory. The main problem is the labour force, which is difficult to raise to a certain level. It is expected that the normal load level will not be reached until the end of July.

Dan Hua, vice president of Zhangjiagang cotton chamber of Commerce and general manager of Xinjiang West China Agricultural Technology Co., Ltd., introduced the situation in Kashi. The weather in Xinjiang's Northern Xinjiang is better than that in southern Xinjiang this year. Kashi's recent strong winds and heavy rain, and hail, the cotton planted by the early people may have an impact on 30%, which has great influence on the seedling stage. Although the people who come into contact this year are still planting this year, their confidence is getting smaller and smaller. Next year they may choose wheat and corn.

Xu Xiaoxiang, vice president of Zhangjiagang cotton trade association and general manager of Haitang International Trade Co., Ltd. of Zhangjiagang bonded area, thinks that cotton rebounded to this position, looking at the trend of the later stage, looking at the latter consumption, and consuming is a secondary contradiction. But it will not go up all of a sudden, the subsequent rise is not so easy, but the back is still going up.

Huang Hongyu, vice president of Zhangjiagang cotton chamber of Commerce and President of Tongzhou cotton industry group in Henan, believes that the biggest contradiction this year is the epidemic. A large number of monetary and fiscal policies will also play a role in the future. Finally, we should return to the production and marketing rate and profitability level. Basically, it is still ample supply that decides that the price is high enough to be consumed, and that the epidemic will be clean if it is clean around the world, which may lengthen the length of global consumption. Low price zone funds will be concerned about how long the cycle will return to consumption. The meeting also linked the relevant members of the India Cotton Association, and made a detailed understanding of the epidemic situation and the cotton market in India.

Ding Xiaofeng, the two class of Zhangjiagang port customs, made a report on the quality of imported cotton at the port of Zhangjiagang in 1-4 2020. He pointed out that the main reason for the decrease of imported cotton is that Sino US trade war has a far-reaching impact on China's textile industry, and the volume of imported cotton has decreased significantly. Two, the impact of the global new crown pneumonia epidemic, the impact of some of the global industrial chain will continue to ferment because of the butterfly effect, and from the import cotton trade in logistics, warehousing, production and processing links. The overall quality of imported cotton in Zhangjiagang has improved in the 1-4 months of 2020. Mainly imports accounted for nearly ten of Brazil, the United States and India cotton quality situation has improved over the past years, the quality of the situation has improved.

The conference of the president of Zhangjiagang cotton trade association has been held since last year, and its influence is rising day by day. Now it has become a benchmark for the cotton industry in the whole country. The view formed by the conference has become an important reference for more and more institutions and cotton enterprises to make decisions.