Zheng Cotton Is Subject To Sino US Trade Negotiations And The Result Is A Drop In Cotton Spot Price.

In November 20th, the pessimism that the first phase of Sino US trade agreement could not be completed this year led to a sharp decline in ICE futures. Recently, Zheng cotton futures have fallen by nearly 500 yuan / ton under the influence of the external market, and the lowest price in November 21st is CF2001 yuan to 12580 yuan / ton. Throughout the November, the cotton market is not calm, the ups and downs of the trend has not yet been terminated, the rise and fall of the year-on-year increase.

There are three major events this month. One is the slight reduction in domestic cotton production. As the picking sale is coming to an end, the production reduction is also expected to be confirmed. But the rate is not as big as rumours. According to the national cotton monitoring system yesterday (20), the total output of cotton in 2019 was 5 million 840 thousand tons, down 4.3% compared with the same period last year. Two was the announcement of the announcement of the cotton reserve in November 14th, which is the first time in the three years after the storage. Judging from the announcement, this round of entry is aimed at optimizing the reserve structure and improving the quality of reserve cotton, which reminds us that the market should not be over interpreted. Three, the trade friction between China and the United States has been repeated repeatedly, and the progress has not been as smooth as expected, and pessimism has spread rapidly.

A market source said, as the futures market prices fell this week, spot trading from the early hot scene turned into a standstill, lint price is no market. At present, domestic supply has basically been clear, and disk prices also reflect the pessimism of the macro face in the recent two days. The future market trend is still dominated by demand side, which is subject to the Sino US trade negotiation results. Cotton enterprises should do their own business well to avoid overly panic and interpret the market.