Market Dynamics: Zheng Cotton Rose Unprepared.

 

Some people think it's a happy event. For most people in the industry, Zheng cotton's market downturn suddenly rose and rose sharply after the whole month. In December 27th, a friend from Xinjiang said, "a few batches of lint sold by traders have been sold at a high price, and the company has made a fortune. And the spot market is heating up immediately, so we are not busy participating in the storage of cotton wheels into the auction, but rather generate a large number of futures warehouse receipts or spot price sales resources. A cold and stalemate market is booming. On the 27-30 th, many Xinjiang and mainland ginning factories indicated that the number of enquiry telephones increased significantly, and there were many real transactions, and spot quotations also increased by 100-200 yuan / ton. Market participants generally expressed hope.

 

There is sadness. While many people are exulting, there are also people who are sad in the dark. This year, many friends in Xinjiang to participate in the acquisition and processing of cotton, in order to avoid risks, many enterprises in the CF2001 contract price of 12500 yuan / ton or more gradually into the market guarantee. At present, the CF2001 contract has broken 13100 yuan / ton in recent months, and the loss has reached 600 yuan / ton. There are also many people in the industry who believe that the rise of Zheng cotton is too abrupt. Spot has obviously not kept pace with Zheng cotton. At present, spot trading is low and price is low. Moreover, the prospect of Sino US trade is not clear. At the moment, it is not wise to act as a good news. Therefore, the market for Zheng cotton rose more this is a wait-and-see attitude.

 

Zheng cotton is often detached from the fundamentals. Pay more attention to policy and Sino US trade, and the ICE situation may be more real. Therefore, in recent years, the main body should pay more attention to domestic policies, funds and international changes, and make a comprehensive judgement.