Hope And Challenge Coexist Through The Cotton Market

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On March 6, US local time, the U.S. Senate voted to pass the $1.9 trillion economic stimulus plan with 50 votes in favor and 49 votes against it, in order to deal with the impact of the new crown pneumonia epidemic on the economy. After more than 24 hours of continuous deliberation, the bill passed the toughest hurdle, bringing new hope to the financial markets of the United States and global markets. Although the house of representatives will also vote on the version passed by the Senate this week, there is no doubt that the procedural review will sign into law. Democratic congressmen believe that the economic stimulus plan is a "plan to save the United States", which will help the United States overcome the epidemic and recover the economy as soon as possible.

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Hope that the U.S. economic stimulus to bring a new round of commodity heat, market parties are full of expectations for cotton high opening. In the morning of March 8, Zheng Mian opened high, with the main cf2105 contract intraday high of 16270 yuan / ton. However, some people said that the rebound of Zheng cotton was less than expected, and the long short fight was fierce, and the intraday rise did not continue, and then concussion operation, indicating that the current cotton market is still lack of strong driving factors. Moreover, the US trillion stimulus bill has already been deliberated, the market has already digested some favorable expectations, and the inflation risk in the United States has not been effectively addressed, or hidden dangers have been laid for the future market.

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According to the feedback of several large trading enterprises in the mainland, last week, Zheng cotton futures fell, the enthusiasm of downstream purchasing increased, and there was an endless stream of bargain buyers. The daily turnover of some enterprises even reached the cumulative turnover since the Spring Festival. However, Zheng cotton stopped falling and rebounded, and the inquiry and inspection of goods immediately cooled down, indicating that the current downstream enterprises are more sensitive and lack firm confidence in optimistic long-term market 。 In the face of investors' enthusiasm for the expected improvement of market demand, the worries of the real industry have not been lifted. In particular, some downstream textile enterprises sell yarn at a reduced price, which brings a little uneasiness to the market.

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At present, the global epidemic situation has not been completely controlled, and the epidemic prevention war or a protracted war. In addition, the fierce economic competition among big countries is inevitable, and the United States' boycott of Xinjiang cotton and its products has not been lifted. Under the background of post epidemic market, hope and challenge still exist in the cotton market.