Cotton Market Still Has Room To Attack, But Be Wary Of Prosperity And Decline

 

 

In the northern hemisphere, cotton growth is basically normal, but there are also some problems: picking in China and the United States are delayed, insect pests in some Indian production areas are aggravating, and the cotton producing areas in the United States are troubled by precipitation.

 

The rotation of state-owned cotton has always maintained 100% of the transactions. The measures such as increasing the number of cotton rounds per day and strictly regulating the qualification of auction subjects have not changed this trend. It has become a transparent window that clearly reflects the real demand of the market and enhances the confidence of many parties.

 

Industrial inventory, commercial inventory, exchange warehouse receipts are lower than in previous years, and the downward trend is still continuing, which is beneficial to the cotton trend.

 

China's cotton imports are at a low level, but there are some signs of relaxation in Sino US relations, and US cotton imports are expected to recover. The superposition of weather problems has stimulated the continuous rise of ice cotton prices.

 

Since the second half of the year, domestic textile and clothing consumption is under pressure, yarn and cloth have accumulated, but the export toughness is still in.

 

The dual control of energy consumption has different impacts on all aspects of the industry, from printing and dyeing to grey fabric end prices are rising to a certain extent, and at the same time, it may reduce the demand for raw materials.

 

The supply and demand gap of global supply chain promotes the transfer of export orders to China, but the problems of tight containers and insufficient transport capacity restrict the export. In addition, with the improvement of the epidemic situation in Southeast Asia, textile and clothing exports will be under pressure.

 

Under the promotion of spot cost, there is still time and space for further increase in Zheng cotton, but the upper resistance will increase accordingly. In the late October, the market focus will gradually shift from the new cotton rush to downstream demand. At that time, the cotton market with the continuous accumulation of real market pressure may usher in an inflection point.