Since early April, Zheng Cotton’s main CF2109 contract has continued to consolidate in the 15000-15400 range, and the rebound momentum has gradually declined. The current price is close to 15,000 yuan/ton. In extreme cases, it does not rule out breaking 14,700 yuan/ton or even 14,500 yuan/ton. possible. Some hedging cotton processing companies and traders have been relatively active recently. A large number of Xinjiang cotton resources have been put on the shelves, and various sales methods such as basis sales, pending orders, fixed prices, etc. have been used. Among them, the spot price transactions last week were significantly better than Fixed price, basis quote.
Recently, the price of downstream gauze fabrics has gradually stabilized and there are a certain amount of domestic autumn and winter orders. Foreign trade orders that were postponed and delayed in March have started slowly. Continued precipitation in some areas of Xinjiang has led to cotton sowing. The period was postponed, but it did not have an impact on Zheng Cotton’s market. The reasons are as follows:
First, the resurgence of the new crown epidemic in Europe, the United States, India and other countries has impacted the global economy, trade, The impact of the recovery on communication and transportation has increased. According to reports, not only have most European countries once again implemented strict epidemic prevention and control or even closed cities, but the epidemic has rekindled in Brazil, India and other countries, and the consumer market has declined significantly;
II Since the end of February, domestic cotton textile companies have not only been replenishing raw material stocks, but also have accumulated stocks of cotton yarn, gray cloth, fabrics, etc. In particular, although cotton yarn prices have taken profits and continued to fall, the correction rate of 1,500-2,000 yuan/ton is obviously not in sync with cotton futures, and the profit transfer has not yet been in place, and the bottom is too early;
Third, although financial policies will not be comprehensively tightened, the central bank will become more prudent and guide operations through industrial policies in different commodity fields. At the 50th meeting of the Financial Stability and Development Committee of the State Council on April 8, it was specifically mentioned that “it is necessary to maintain basic price stability, especially paying attention to the trend of commodity prices.” Considering that the current inflation is mostly imported, the central bank continues to Carry out reverse repurchases to tighten liquidity; in addition, most banks have reached the second level of targeted reserve requirement ratio cuts for inclusive finance, and few have further lowered their reserve ratios, releasing relatively limited medium- and long-term liquidity. </p
