Domestic Cotton Market Trend The Downstream Demand For Cotton Weakens After The Festival

The trend of the domestic cotton market may have some impact on Zheng Mian due to the trend of American cotton, and Zheng Mian's own fundamental drive is relatively limited.

At present, the cotton planting in Xinjiang has basically ended, and the planting area is expected to increase year on year, with a growth rate of about 2% - 5%. The subsequent cotton yield estimation needs to pay close attention to the weather conditions, and the impact is limited at present.

The traditional peak demand season of "gold, three silver and four silver" has passed, and gradually entered the off-season stage. Under the current tariff policy of China and the United States, the uncertainty of textile and clothing exports is also increasing, and the demand side support is not strong.

It is expected that the center of gravity of Zheng cotton price may move up after the festival, but it is lack of sustainability at present, and the support of fundamentals is limited. The future drive may still be more macro level, and continue to pay attention to relevant news. The sowing of new cotton is nearing the end, and Zheng Mian is in low position.

At present, the commercial inventory of cotton in China remains high, and the hedging pressure of enterprises remains; After the May Day holiday, the downtime of downstream textile enterprises increased, and the downstream demand for cotton weakened; The US tariff on China will restrain the terminal demand for cotton textiles, which will drag down the domestic cotton price.

In addition, the new season cotton planting in Xinjiang is nearing the end, and the weather in the production area is normal at present.

At present, the domestic cotton supply remains sufficient, and the downstream demand is weak. The superposition of new cotton planting is nearing the end, and the weather in the production area is fair. In the short term, Zheng cotton fluctuates at a low level.