When Will Cotton Prices Come To An Inflection Point?

On Thursday (March 12th), the three major U.S. stock indexes closed down more than 9%, the biggest one-day decline since October 1987. Moreover, other stock markets around the world have faltered. With the continuous spread of the international epidemic, the market with unprecedented pessimism is hard to say.

When the epidemic increases the risk of global economic recession and assets are facing severe fluctuations, cotton prices continue to hit a new low. At present, the price of ICE main contract has fallen below 59 cents / pound, a low point in four years, and the main cotton contract of Zheng cotton has fallen below 11800 yuan / ton, and has also reached a four year low. Such a trend is rare under the influence of the global epidemic and crude oil. The most important thing is that such a decline is not yet stable.

Just a few days, Zheng cotton has dropped about 1000 points. In the face of such a big decline, some people in the market are eager to copy the bottom. Should we keep greed at the time of market fear? Is cotton price coming to an inflection point?

According to the people concerned, the decline in cotton prices is mainly due to the continuous fermentation of domestic and foreign epidemic. At the end of the domestic epidemic, foreign epidemics continued to spread. At present, there is no sign of improvement, let alone an inflection point. Despite the decrease in the number of confirmed cases in individual countries, the number of confirmed cases is increasing in most countries, and there is still a period from the turning point of the epidemic. As long as there is a turning point in the global epidemic, cotton prices will hit bottom and rebound.

"Expensive is extremely cheap, cheap is the most expensive." The future market is bound to reverse. As an industry and investor, it is necessary to remain calm in the face of panic in the market. The financial crisis can be overcome in 2008. This epidemic is no exception. We believe that the future is bright and the road is tortuous. Therefore, when we focus on the difficulties and crises in front of us, we must always face danger and fear.