On the 27th, the main contract of WTI crude oil futures rose by US$1.78/barrel, an increase of 2.4%; the main contract of Brent crude oil futures rose by US$2.46/barrel, with a settlement price of US$78.60/barrel. The rise in international crude oil prices has boosted the stock market and the overall commodity market atmosphere. Last night, ICE US cotton futures rose to a nearly four-week high, with the main March contract closing up 3.16 cents/lb, or 2.9%, and finally closed at 112.28 cents/lb.
It is understood that the external performance after Christmas surprised the industry, but according to a report from Mastercard SpendingPulse, U.S. Christmas holiday sales increased by 8.5% year-on-year due to increased consumer spending on clothing, jewelry and electronic products. Compared with 2020, sales of clothing, jewelry and electronic products increased by 47%, 32% and 16% respectively. Sales of these three categories of products also increased by at least 20% compared with pre-epidemic levels in 2019, especially Clothing consumption has increased significantly.
Driven by the rising atmosphere in the external market, domestic Zheng cotton futures opened higher in the morning on Tuesday. The main CF2005 contract exceeded 20,400 yuan/ton during the day, and the high of the CF2001 contract exceeded 21,600 yuan/ton. Although the recent news that the United States signed the “Uyghur Forced Labor Prevention Act” and banned the import of products from China’s Xinjiang under the pretext of so-called “forced labor” has caused uneasiness to the market, due to the signing of the “Regional Comprehensive Economic Partnership” on November 15, 2020 “Relationship Agreement” (RCEP) will officially come into effect on January 1, 2022. International business channels will be broadened, and the domestic perfect supply chain system and the current stable market environment will make the textile market still confident in future production. . According to feedback from some textile companies, the cost of raw materials has been high this year, and corporate product profits have been squeezed. However, some companies still need to replenish their stocks appropriately before the Spring Festival to meet orders, which still supports cotton consumption.
Due to the high cost of cotton processing this year, ginning companies lack hedging opportunities, hold high spot inventories, and have a strong mentality of waiting for an increase. The recent rise in cotton futures at home and abroad has undoubtedly lit up the hope of many companies again. According to some mainland ginning companies, the hedging window for real estate cotton has recently opened, and some low-cost spot positions can even be opened in the May contract. Compared with the market conditions at the beginning of the month, the mentality of industry players has improved recently.
Yesterday, the main contract of WTI crude oil futures rose by US$1.78/barrel, an increase of 2.4%; the main contract of Brent crude oil futures rose by US$2.46/barrel, with a settlement price of US$78.60/barrel. The rise in international crude oil prices has boosted the stock market and the overall commodity market atmosphere. Last night, ICE US cotton futures rose to a nearly four-week high, with the main March contract closing up 3.16 cents/lb, or 2.9%, and finally closed at 112.28 cents/lb. It is understood that the external performance after Christmas surprised the industry, but according to a report from Mastercard SpendingPulse, U.S. Christmas holiday sales increased by 8.5% year-on-year due to increased consumer spending on clothing, jewelry and electronic products. Compared with 2020, sales of clothing, jewelry and electronic products increased by 47%, 32% and 16% respectively. Sales of these three categories of products also increased by at least 20% compared with pre-epidemic levels in 2019, especially Clothing consumption has increased significantly. Driven by the rising atmosphere in the external market, domestic Zheng cotton futures opened higher in the morning on Tuesday. The main CF2005 contract exceeded 20,400 yuan/ton during the day, and the high of the CF2001 contract exceeded 21,600 yuan/ton. Although the recent news that the United States signed the “Uyghur Forced Labor Prevention Act” and banned the import of products from China’s Xinjiang under the pretext of so-called “forced labor” has caused uneasiness to the market, due to the signing of the “Regional Comprehensive Economic Partnership” on November 15, 2020 “Relationship Agreement” (RCEP) will officially come into effect on January 1, 2022. International business channels will be broadened, and the domestic perfect supply chain system and the current stable market environment will make the textile market still confident in future production. . According to feedback from some textile companies, the cost of raw materials has been high this year, and corporate product profits have been squeezed. However, some companies still need to replenish their stocks appropriately before the Spring Festival to meet orders, which still supports cotton consumption. Due to the high cost of cotton processing this year, ginning companies lack hedging opportunities, hold high spot inventories, and have a strong mentality of waiting for an increase. The recent rise in cotton futures at home and abroad has undoubtedly lit up the hope of many companies again. According to some mainland ginning companies, the hedging window for real estate cotton has recently opened, and some low-cost spot positions can even be opened in the May contract. Compared with the market conditions at the beginning of the month, the mentality of industry players has improved recently.
