Confidence Falls, Market Rising Power Is Insufficient

Numbers speak

In July, the textile off-season continued, and Sino-U.S. relations continued to deteriorate under the constant pressure of the United States on Hong Kong, Xinjiang and the South China Sea. The market's confidence in the global economic recovery fell, and geopolitical risks continued to rise. The recovery pace of crude oil futures and commodity index generally slowed down.

During the month, the domestic cotton spot price continued to rise under the condition of stable recovery of China's economy and the setting of price bottom line for reserved cotton rotation; the international cotton price fluctuated greatly and the trend was weak due to the Sino US contradiction, contracted shipment of American cotton and weather factors, and the difference between domestic and foreign cotton spot prices changed from negative to positive in the month. The domestic futures spot basis difference slightly expanded, and the transaction price of reserved cotton wheel continued to be lower than the spot price, with prominent advantages; the price of cotton yarn at home and abroad continued to decline slowly, the price difference between yarn and cotton narrowed, and the loss situation of textile enterprises intensified; cotton and alternative raw materials ran counter to each other, and the price advantage of polyester and viscose short was more prominent.

CRB index (January to date)

　　 Wenhua index (January to date)