Domestic And Foreign Cotton Prices Rise, Spot Operation Enthusiasm To Enhance

On Tuesday, the United States Department of Agriculture issued a report on cotton planting in the United States, because the sowing area is far below the expectations of the market, and the drought problem in Texas is still serious, stimulating the external market to continue to rebound. Yesterday, the US cotton ICE main contract in December finally settled at 62.76 cents / pound, hitting a high of 62.79 cents per pound, a nearly four month high. Outside the market rose, the domestic Zheng cotton also rebounded, CF2009 contract has risen from this week's low 11600 yuan / ton to today's 11900 yuan / ton. The focus of cotton prices has picked up again, bringing hope to market participants.

Compared with a few days ago, a number of cotton trading enterprises and textile enterprises in recent years indicated that the bottom line of the inquiry was significantly enhanced, and the turnover also improved. With the rise of futures prices, spot quotas have also been improved. At present, the 3128 level of Xinjiang's machine picked cotton is priced at 12000-12200 yuan / ton, and the net weight of India cotton is about 11850 yuan / ton, with an average increase of 150-250 yuan / ton. The enthusiasm for buying and selling of all parties in the market is enhanced. Besides being driven by futures, they are also affected by the following factors:

1. After the Dragon Boat Festival, the downstream cotton mills have resumed work in succession, the overall start-up has picked up slightly, and the demand for cotton has increased; two, the policy of reserve cotton rotation has landed, the number of rounds is in line with market expectations, and the price of the wheels has been implemented by the fusing mechanism, laying the bottom line of 11500 yuan / ton for domestic stock. It not only relieves the worries of the industry, but also is regarded as the cornerstone of the "bottom up" support. Three. The first day auction of cotton reserves is a good start, creating a good atmosphere for buying and selling. At the same time, photo storage has met the demand of some yarn enterprises for low price raw materials, and reduced the price difference between foreign yarn and foreign yarn by reducing the cost, thus enhancing the competitiveness of domestic yarns. Four, the domestic cotton market in the process of repair, long-term price rise is a common market consensus, investors to enter the market to enhance the incentive to stimulate the industry to improve.

On the whole, under the shadow of the global epidemic, the domestic epidemic was first controlled and the impact on the cotton market gradually weakened. The key growth period, cotton planting area, locust plague disturbance, and drought in some countries or regions in the main cotton producing countries in the northern hemisphere have strengthened the short-term market. Therefore, in the context of the twists and turns, the industry will be better in the context of restoration, cotton city will gradually change will be inevitable.