How To Treat The Recent Trend Of Zheng Cotton?

Recently, Zheng Mian is growing like a rainbow. On Friday (23rd), all contracts of Zheng cotton rose sharply, among which the price of cf2109 contract was close to 16000 yuan / ton, with bulls taking the initiative. Such a big rise is unexpected, and the market mentality has also changed for it. For a while, bullish trend is rising again. So, how to treat this wave of Zheng cotton market?

First, affected by the international epidemic situation. Since late March, India's new crown has been out of control, and Indian cotton has been greatly impacted. Many enterprises have stopped production and stopped production. As a result, a large number of overseas orders continue to flow back to China, and domestic enterprises have increased confidence in the future market.

Second, some concerns about the domestic cotton area and output this year. In late April, the spring sowing of cotton has been carried out in various places. According to the feedback, although the area of Xinjiang has increased slightly, the snow in some parts of Northern Xinjiang decreased from 21 to 23, and the temperature in southern Xinjiang also dropped with strong wind, which was extremely unfavorable to the emergence of cotton. The market was worried about the growth of cotton in Xinjiang this year. Moreover, the cotton area in the mainland continues to decline, and the industry has no hope for this year's output.

Third, the textile and clothing market has improved recently. According to the feedback from enterprises in Hebei, Shandong, Jiangsu and Zhejiang provinces, yarns have generally increased by 300-400 yuan / ton in recent years, and even some combed high count yarns have increased by more than 500 yuan / ton. The rise of yarn to the upstream cotton brings good, therefore, some cotton enterprises also stepped up the purchase of warehouse receipt cotton.

To sum up, affected by the multiple favorable effects at home and abroad, Zheng Mian also ushered in a wave of new hype. Traders seized the opportunity to launch a new wave of speculation, and Zheng Mian's rise was natural. It is expected that Zheng Mian will continue to fluctuate upward along the rising channel in the near future.