On April 6, Zheng Mian’s performance was still satisfactory. Although it opened weakly downward, the market suddenly started to rise around 10 o’clock. The CF2109 contract increased its position by more than 29,000 lots, giving people the feeling of reversing the decline. The market is looking forward to how high this rise can go.
Of course, this rise is mainly driven by the surge in US cotton ICE. The market movement is very sudden. Large rises or falls within the day have become a norm. The increased amplitude has led to obvious risks. Increase. From the perspective of domestic fundamentals, the production of textile companies is normal. Although there was a deep correction in the early stage driven by market pessimism, the CF2105 contract showed signs of stopping the decline and stabilizing at the 14,800 yuan/ton point.
According to data from the National Cotton Market Monitoring System, as of April 2, the national new cotton sales rate was 85.1%, a month-on-month increase of 2.9 percentage points, of which Xinjiang sales were 85.0%, a month-on-month increase 3 percentage points; the cumulative sales of lint cotton nationwide were 5.058 million tons, an increase of 169,000 tons from the previous month. The increase in week-on-week sales data shows that market demand is still there, especially now that it is the peak production season for textile companies, and there is support for downstream demand.
It is reported that cotton prices have experienced a round of decline recently. Enterprises have insufficient purchasing confidence and their purchasing efforts have declined. As cotton prices gradually stabilize, raw material inventories gradually decrease, coupled with the peak production season, Corporate procurement will also gradually begin. Moreover, driven by production profits, business operating rates will continue to remain high.
Recently, foreign epidemics have shown a resurgence, and some European countries have adopted stricter blockade measures, exacerbating market concerns about demand. The shock and correction in domestic and foreign cotton prices have already reflected this. In addition, the epidemic situation in India and other textile producing countries is out of control, which is good for China’s cotton spinning industry. Last year, during the worst period of the global epidemic, customs data showed that China’s textile exports rebounded strongly and foreign trade orders continued to flow. As the country with the best epidemic control in the world, China has the highest textile safety. Therefore, before there is substantial good news, the room for short-term rise and fall of cotton prices will be limited. </p
