Zheng Cotton Futures Exceeded 14000 Yuan / Tonne Cotton Spot Spot Can Not Keep Pace.

Today, Zheng cotton main contract broke through the 14000 yuan / ton integer pass, touched nearly 5 months high, bullish strong pull up the market amazed. Looking back at last Thursday's opening up mode, the rise and speed are somewhat unexpected. Recently, with the acceptance and recognition of the good agreement between China and the United States in the first stage of trade, the bullish mentality of the industry has been constantly boosted. From the point of view, it seems reasonable that the support function of cotton cost to the price needs to be reflected in the futures market. However, in just two working days, it has risen by nearly 1000 points, so that the cotton enterprises that have experienced many rounds of collapse this year are somewhat unable to return. What are the changes in the futures market in recent days?

It is understood that although futures prices rose too fast, the spot purchase and sale instead turned pale. On the one hand, due to the sharp rise in the price of the period, the cotton sales rhythm is not fast enough. For the cotton enterprises concerned, if the spot price increases with the same proportion, the buyer will inevitably be in conflict, or even become a situation where no one is interested. Only if the buyer accepts the purchase price, can the transaction be truly profitable. However, near the Spring Festival holiday, the demand for stocking in downstream mills is limited. The cost of raw materials has increased, and some textile enterprises have begun to stop and wait, and market enquiries have decreased significantly. On the other hand, near the Spring Festival, the price of textile enterprises is difficult to raise. According to feedback from some large scale enterprises, the price of yarns is not adjusted very much. Therefore, the cost of raw materials will move upward and the downstream profit space will be compressed. In addition, this year, a large number of enterprises sell the lint in the form of futures price by locking the base price. Now the price rises sharply and rapidly, and some of the losses are serious, and the spot market can not be sold in time.

At present, the main price of zhengmian has basically covered the processing cost of Xinjiang cotton, and the next is whether it will be difficult to sell or sell spot to become a cotton enterprise. After all, the price trend of Zheng cotton will become the key to its decision. In the promotion of the role of funds, cotton enterprises should make good risk control through options and Futures Based on their own strength. It remains to be seen whether the breakthrough can be sustained. Remember that high places are not too cold. Do not blindly overtake.