Market Analysis: Zheng Mian'S Weak Market Hit A New Low In The Shock Stage

On Thursday, Zheng Mian's main contract was weak and volatile, hitting a low in more than three months. ICE cotton continued its decline, hit by negative sentiment in grain, oil and financial markets, and the strengthening of the US dollar also weighed on cotton. While domestic cotton is affected by the external market, downstream demand needs to be followed up. In addition, with the advent of the new flower planting season, the market will welcome more topics.

According to Huarong Rongda Futures, from a fundamental point of view, the short-term supply of old cotton is relatively abundant, and the supply of new cotton needs to pay attention to the impact of cooling and rainfall on cotton seedling growth this Friday. In late April, orders in the downstream market declined on a weekly basis. The off-season atmosphere is gradually strong, and the transaction volume has shrunk. At present, the inventory of finished products of textile mills has accumulated slightly, but the overall inventory pressure is acceptable.

As for the logical evolution of the future market, Everbright Futures said that in the international market, there are many disturbing factors in the recent US cotton market, and the macro level continues to be under pressure. The weather during the planting period is good, and the yield increase is expected to be strong, which will drag down the price of American cotton. However, after the US cotton futures experienced a sharp correction, the bad news was released and is expected to gradually stabilize.

In terms of the domestic market, the supply and demand support for cotton prices is weak in the near future, but the marginal drive is also limited. The weather is still a key factor to focus on in the future. It is expected that Zheng Mian will be subject to wide shocks in the short term, waiting for new contradictions to emerge.