Market Analysis: Zheng Mian'S Strength Follows The Overall Sentiment Of The Domestic Market

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On the first trading day in September, Zheng Mian's main contract rose nearly 1%, hitting a 14 month high in the session. Macro policies were introduced intensively, and domestic commodities were generally warmer. Zheng Mian followed the optimistic mood of the market. The cotton fundamentals have not changed much, and the uncertainty of new cotton yield per unit area still exists. However, the market generally recognizes that the output has decreased from the high base of last year, and ginning plants still have the expectation of snapping up revenue.

The domestic macro policies have been issued intensively, and the domestic commodity market has warmed as a whole. The cotton fundamentals have not changed much, and the uncertainty of new cotton yield per unit area still exists. However, the market generally recognizes that the output has decreased from the high base of last year, and ginning plants still have the expectation of snapping up revenue. Xinhu Futures said that, on the industrial side, the output of Xinjiang's new cotton on the supply side increased compared with the previous expectations, mainly because the per unit yield decreased less than expected, and the impact of potential frost on per unit yield should be paid attention to later; Although dumping and storage alleviated some of the tight inventory, the weekly commercial inventory of cotton was still at a high level compared with that of the previous year, and Xinjiang's cotton inventory was tight; Some regions in Xinjiang began to sell hand picked cotton at a price of 9.5 yuan/kg, to some extent, further strengthening the market's expectation for new cotton; On the demand side, since August, the inventory and spot losses of the downstream industry chain have improved on a month on month basis, but they are mainly seasonal changes. Although the increase of proofing orders has occurred, the overall situation is still insufficient compared with the same period of previous years, waiting for orders to be issued in September.

As for the focus of the market, Huarong Rongda Futures said that at present, pure cotton yarn has not changed much, and the trading performance is average, which is less than that of the same period in previous years. But at present, the textile enterprises maintain a healthy operation as a whole, and the pressure on finished goods inventory is not large. Weaving factory orders have improved, but the range is limited, and the feeling of peak season is unclear. The price of some new orders increased slightly, but most textile mills and traders still maintained the original price, mainly taking goods at the same price. At present, Zheng Mian's overall performance is relatively strong. The market expects a higher purchase price of seed cotton in the new year, which forms a certain support for the panel price. In the short term, attention should be paid to the inflow of funds and the hot spots of supply side speculation. If the funds do not retreat, cotton prices in the short and medium term may maintain a strong trend of shock. Zheng Mian, picking cotton by hand, Zheng Mian's strength follows the overall sentiment of the domestic market

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