In May, The United States Or Cotton Showed A Trend Of Concussion.

May

When the market starts to go out, the market supply will increase, and the bottom price of the auction will be based on the mean value of imported cotton and domestic cotton. The linkage between the international market and the domestic market will be unprecedentedly enhanced. This will make the cost of domestic textile raw materials in line with the international market, and the competitiveness of textile and downstream products in the international market will be enhanced. A sharp improvement in textile and clothing exports and cotton cloth exports in the 3 month will be a new start, and domestic demand will continue to stabilize in the late stage.

4, cotton rose wildly in the month, and Zheng cotton evolved from the original depth premium to the current premium market. The space over the short term is limited, especially in the background of the orderly storage of cotton reserves in the future. The supply of the market is adequate, and demand has not been effectively and rapidly rising. The cotton price has risen sharply and lacks the basis of the stock market. It is suggested that the industrial customers later pay attention to the selling date of the futures contracts in the futures market.

Overall, cotton fundamentals are slowly improving, and speculative funds are selling short.

The number of non-commercial multi head positions has increased slightly, but the number of non commercial short positions has dropped significantly, while arbitrage positions have also declined, indicating that speculative short money has begun to arbitrage the market, and commodity long positions are also decreasing.

As a result, the value of entities buying and holding positions has been reduced. Overall, the position of CFTC funds has been reduced. The main reduction in positions is from non commercial shorts.

China will begin to store cotton in the 5 month, when domestic supply will increase and the dependence on imported cotton will decrease. This will bring some negative impact on the international market.

At the same time,

It is also in the environment of de stocking, but new cotton production in other countries will be reduced to varying degrees. There may be a structural shortage in the international market in the coming year.

Judging from this aspect, there should be no new low point in the phase of international cotton price, but there is also limited room for further growth. The probability of bottom oscillation in 5 months is larger.