The Cotton Market Is Not Mature Yet.

Recently, the atmosphere in the upstream cotton market continued to remain volatile. ICE cotton rose steadily in recent days, the main contract broke 60 cents / pound. Zheng cotton futures also showed a relatively high level of activity. The Zheng cotton market closed at 11695 yuan / ton in June 1st, 3 yuan CF2007 closed at 11785 yuan / ton, and 5 days CF2007 closed at 11985 yuan / ton. CF2007 Although the spot market is still not much, as the futures market is pulling, the price of some cotton enterprises has also been strong. Now the mainstream price of the 329 grade cotton in the mainland is 12000-12100 yuan / ton. Overall, however, the overall atmosphere of the market is still weak. Most of the waiters are low in volume and stable in price. And some people in the industry also generally believe that the cotton market is still not suitable for big moves in the near future. The main reasons are:

First, the key is that although foreign epidemic control has been controlled, most countries are worried about the two infection. Market participants generally believe that it is difficult to recover obviously, and difficulties and pressures remain. At present, the overall situation of the middle and lower reaches of the market is still not optimistic. Although there are some scattered small bills entering, the cotton yarn market continues to be dull in recent days. A few days ago, the mainstream price of 32S and 40s combed yarn in Shaoxing market was 18730 yuan / ton, about 19800 yuan / ton, the mainstream price of 32S combing was 21100 yuan / ton, and the mainstream of 40S combing was 22100 yuan / ton. The mainstream price of 60s combed yarn is 26500 yuan / ton. According to the staff of some cotton spinning factories, "although the market is constantly shaking, the demand for the bottom of the downstream industry chain is basically weak. Now the downstream market orders are still less, and the domestic market has begun to enter the off-season, lack of orders, there is no demand. Besides, the pressure of the funds is generally larger. The cotton spinning factory's mindset is still cautious and weak, and its confidence is temporarily difficult to shake, which makes it difficult for cotton mills to buy cotton.

Second, the impact of the epidemic for several consecutive months, on the one hand, whether upstream enterprises or downstream businesses feel more hurt, although most enterprises resumed production in 2 to March, but from the actual situation, more than 6 percent of the production rate is low. According to some data, the loss of the textile industry is greater than that of the 91% textile enterprises, mainly due to a substantial reduction in sales revenue and losses, a backlog of inventory and a sharp decline in orders. On the other hand, the Sino US trade war has been fought since last year. Even if the epidemic is improving, the United States still needs to take action. And cotton yarn manufacturer's overall sales of cotton yarn is still poor, and the capital turnover in factories is not smooth, basically at the end of June. Most of the industry's cotton market is dominated by an insipid attitude, and it is still uncertain how the orders will follow. Moreover, the market is more confused about the situation in the second half of the year. Some are worried that the epidemic will return to a certain extent.

Generally speaking, at present, the cotton market is mainly about futures, but overall, under the pressure of funds in the middle and downstream markets and orders, the cotton market will still be somewhat "wobbly". It will stabilize and linger in a small concussion, sorting out the intertwined market.