Since mid-to-late May, spot prices at home and abroad have experienced fluctuations of varying magnitudes. There has been a lot of discussion, the industry is eager to give it a try, and there are various psychological and behavioral manifestations.
However, the market is always dynamic. Sometimes it is affected by changes in the external environment, and sometimes it is driven by upstream and downstream production and consumption. Of course, the market under the direction of trade globalization has dyed the circulation pattern into A kaleidoscope of colors. As for the recent fluctuations in the cotton market, some people think it is a precursor to the end of the epidemic, some say it is a rebound in market consumption, and some even say it is related to people in Europe and the United States gathering to denounce the black incident, and the governments involved will relax controls on foreign trade and consumption. Market turnaround caused by restrictions, etc.
Faced with such analysis and predictions, we do not have to completely believe them or reject them. Instead, we should analyze the market rationally with an ethereal attitude. First of all, we still have to look at the mainstream of what the COVID-19 epidemic is like. Enterprises engaged in foreign trade naturally have to keep an eye on the epidemic situation and the opening of circulation in trading countries. Those who do domestic sales must keep abreast of domestic market conditions and customer actions. Only by knowing what is known can one be confident. Secondly, the changes in the cotton market are now commonplace, and the magnitude of the changes is beyond the limits of people’s normal thinking, such as “roller coaster”, “snail climb”, “tiger descending the mountain”, “boiled frog in warm water”… the list goes on and on. , no one dares to say anything about the laws of the cotton market. In addition, there are always people in the industry who lament the artificial manipulation of the cotton market. Although these initiators have not been exposed, it is naturally not a new thing. When futures plummeted, some merchants shouted, “Hurry up and fill up your positions” and “There won’t be any more shops like this in this village.” When prices surged, on the one hand, someone would remind you to “take it easy,” and on the other hand, people would also feel that the market You should “buy up and not down”.
As a company, you are the decision-maker of the company. The operation of the company depends on strength, technology, and market. All external voices can only be regarded as “reference information.” What is very interesting is that since the country launched the cotton reserve auction, some people in the industry have mentioned that the starting price will be the “wind vane” of the cotton market. The author is also one of the early people who had this idea. Over the years, the starting price has been the “wind vane” of the cotton reserve. The effect is obvious. In the turbulent situation of the cotton market, most people choose the principle of following the price. When sales are poor, they occasionally reduce production and stop work, but there are few “big men” who gamble on the market.
So, in the face of the cotton market legend, we’d better be a rational spectator. As for what kind of cotton should be purchased at what price, it should be determined based on the order in hand and the established production and sales costs. You can “determine the purchase based on sales” or “purchase diligently and sell quickly”. Everything is based on the price, and you can earn more and earn less. Relying on technological innovation and potential management, we can only rely on not being willing to gamble. Nowadays, the market is full of storms, the economy is ups and downs, and external factors are hindering the control. The dreams of operators who cannot be like a feather can be realized. The current grade difference, increase and decrease , transparent profits, completely unimaginable. In the business world, it is a constant truth to grasp the moment and be safe. To be a rational, calm, intelligent and keen operator is to be a “good sailor” in the business world.</p
