Since the opening of the “Two Sessions”, foreign attention to Sino-US relations and the Chinese economy has risen to a new level. China’s imminent passing of the “National Security Law” on Hong Kong has aroused strong concern. At the same time, foreign countries were disappointed that the conference did not set a target for economic growth this year. Overall, the recent tit-for-tat attitudes between China and the United States have made financial markets quite nervous and panicked, and whether China’s economy can continue to bring surprises to the market has also profoundly affected investor sentiment. Against this backdrop, the overall performance of commodities continues to be under pressure.
As of now, the US cotton signing progress has reached 117%, which is much higher than the average of 102% in the same period in the past five years. Last week, China was still a big buyer of US cotton, signing 153,000 bales of this year’s contract and 79,000 bales of next year’s contract. Although China’s contract signing situation is good, the number of unshipped US cotton has reached 2.36 million bales, which is much higher than the 1.198 million bales in the same period last year and the average of 998,000 bales in the same period in the past five years. Whether the shipment can be shipped smoothly in the later period is of concern.
Foreign analysts believe that China’s failure to mention this year’s economic goals and the potential Sino-US tariff war are the main reasons for the current investor retreat. In addition, although China is still signing a large number of US cotton contracts, the number of US cotton contracts per week has decreased significantly in the past two weeks, and investors will take a wait-and-see attitude towards the market in the short term. Technically, the July contract is currently 9 cents higher than the low in early April this year. After rising for six consecutive weeks, cotton prices have encountered strong resistance at 60 cents, and the resistance at 62 cents will be higher. Large, there is a tendency to be overbought in the short term, and a correction is more likely. </p
