Cotton Spot Stabilization After The Spring Festival Whether Cotton Prices Will Rise?

Last week, driven by the strong upward trend of Zheng cotton futures, the market saw a surge of enthusiasm. Last Friday, because of the US air raid Baghdad's killing of Iran military key personnel, domestic and foreign investors were afraid of turbulence, and the trading volume became cautious. With the exception of the high cotton position, the trend of Zheng cotton's rise was also somewhat reduced. From today's main CF2005 contract trend, Zheng cotton or live in the 14000 yuan / ton fluctuation.

With the boost of futures prices, cotton spot prices also moved upward. Last Friday, the mainstream of Xinjiang machine picked cotton offered a price of 13600-13900 yuan / ton, and the mainstream of hand picked cotton quoted 13700-14100 yuan / ton, which raised 400-600 yuan / ton compared with the beginning of the week. According to the latest research, although some yarn prices have also increased, but according to some cotton mill feedback, cotton growth is greater than yarn. After the rise in cotton prices, the downstream acceptance has declined, except for orders that are just needed, and spot trading in the market is slack. In addition, the rising trend of Zheng cotton slowed down, and the stock market was stable in the past two days. With the Spring Festival holiday approaching, some areas even appeared the phenomenon of price free market.

According to the feedback from a person in charge of an enterprise in Akesu, the linen processing of the ginning mill is coming to an end. The profit of the spinning mill is not good. Recently, all parties in the market have begun to prepare for the holiday. Some of the mainland workers have started to return home. Compared with the present, the industry seems to be more concerned about whether the cotton price will continue to rise after the Spring Festival.

Recently, due to the rising price of Zheng cotton, the operators' confidence has been greatly boosted, and pressure on some ginning factories and traders has also been released to a certain extent. Although the overall demand for downstream is not ideal, but in the near year, some local orders are showing signs of improvement. If time goes by, the upstream and downstream industries will gradually become unimpeded, and the spot price after the festival has reached a new level. Therefore, the probability of cotton price rise after the Spring Festival is far greater than that of the fall. Of course, we need to pay close attention to the signing of the first stage agreement between China and the US. After all, the conditions for cotton prices to rise are relatively mild under the macro market environment.