Cotton Futures Rebound Cycle Inflection Point Or Already Appeared

The cotton market has been in the cold winter or the past, and the financial analysis of Chuang Chuang, with the recovery of domestic cycle demand, cotton prices have touched the historical lows and continued to consolidate. Considering the cyclical rule affecting the cotton market, the cotton price is likely to rebound gradually.

In the short term, there are bad profits in the external market to restrict the rebound of cotton.

For example, the volume of global cotton trade has decreased, while consumption has decreased a little. The total output of cotton has increased and stock has kept rising.

Based on the influence of the periphery on cotton prices, it is estimated that cotton prices will have certain support.

Domestic demand for cotton is generally down from textile and clothing exports, or will mainly affect domestic cotton prices in March this year.

Chuang Chuang believes that the low price of cotton in February has not yet shown signs of a rebound in domestic demand.

However, the data in March are expected to be weaker than in February, which further spawned domestic cotton prices as early as possible to go out of the bottom.

Domestic demand and consumption are rising steadily and synchronously. Therefore, we have reason to believe that domestic cotton prices have come to the turning point of the cycle, and the cold winter in the industry has gone.

Pioneer finance believes that cotton futures are relatively resilient and have strong support strength. With the release of the data in March, the textile industry replenish raw material inventory and reduce finished goods inventory, which will also drive cotton prices rebounding.