The Cotton Market Is Slow To Buy And Sell, And The Market Is Cautious.

At the end of the Spring Festival holidays, businesses began to start. As the market was basically stagnant during the Spring Festival, after the return of the festival, the Zheng Mian area shook and the spot market maintained the pre - season quotations.

In February 11th, Zheng cotton main futures CF1905 under the impetus of funds, the night plate rebounded slightly, hit a high point hit 15400 yuan / ton, the second closing closing time again staged roller coaster market, to review the previous gains, 13 days continue to weak down, to 14995 yuan / ton closed, short-term Zheng Mian continued turbulence, investors a little shocked, more cautious operation.

As of February 12th, the national lint processing capacity reached 5 million 180 thousand tons, of which 5 million 46 thousand tons of Xinjiang cotton. At present, the enterprises in the territory have not yet been fully started, and sporadic enterprises have to lower the average cost and buy a small amount of surplus seed cotton.

Constrained by the limited downstream demand, the current inquiry is slowly increasing, and the actual turnover is almost unlimited.

Most enterprises have said or postponed the sale of new cotton after the Lantern Festival, and there were also a few hedging enterprises in the recent cotton mill heights.

New cotton processing capacity is at a high level, the supply pressure of Xinjiang cotton is still more prominent, and demand for textile enterprises will continue to dominate the market trend after the festival.

At present, the mainstream price of Xinjiang machine picked cotton is quoted at 15600-15700 yuan / ton, and the mainstream price of hand picking cotton is quoted at 15800-15900 yuan / ton, and some of the resource seller sells the warehouse fee.

According to the survey of some cotton spinning enterprises, the difficulty of recruiting workers after the festival is the main problem. The difficulty in the employment of downstream enterprises leads to the difficulty of starting the enterprise, which restricts the digestion rhythm of cotton to a certain extent.

In addition, some textile enterprises received a 1% tariff quota before the Spring Festival. However, according to the feedback from cotton traders at main ports in China, the import cotton trade did not improve.

This can also reflect the mentality of the downstream is still cautious, continue to maintain low inventory ideas did not change.

Since the Spring Festival holiday, the U. S. dollar has strengthened, USDA reports the margin factors and other factors, the ICE American cotton foreign disk continued to explore, the panic mentality of the importing cotton merchants increased, although the current port customs clearance prices have not been substantially reduced, but the cotton traders said that the current risks continue to increase, the later price fall may be very large.

In February 14th, the new round of Sino US high-level consultations will open in Beijing and become the focus of attention again. If the negotiations continue to release positive or boost the external market rebounding slightly, the domestic market will also be a positive.

In February 12th, US President Trump said he would consider delaying the March 2nd deadline for raising tariffs.

China and the United States have not changed their expectations in the course of consultations. Later, if Sino US trade has made substantial progress or fundamentally changed the mindset of cotton traders.

In the short term, before the outcome of the consultation, the wait-and-see sentiment was shrouded, and the purchase and sale of cotton city resumed slowly.