The Zheng cotton market is calm, and the fluctuation range of foreign cotton has decreased.

That week (September 5-9), the domestic Zheng cotton market was calm, fluctuating in a narrow range around 14,400 yuan/ton. After the violent shock in the early stage, the market w…

That week (September 5-9), the domestic Zheng cotton market was calm, fluctuating in a narrow range around 14,400 yuan/ton. After the violent shock in the early stage, the market was temporarily in a hype vacuum period, and the cotton market ushered in a long-awaited recovery. of peace.

That week, the U.S. cotton production report released by the U.S. Department of Agriculture showed that new cotton cotton was spun out at an accelerated pace, and the poor seedling rate in Texas dropped significantly. As of September 11, 2022, the U.S. cotton cotton splintering rate was 49%, an increase of 10 percentage points from the previous week. , an increase of 14 percentage points compared with the same period last year, and the proportion of poor vaccinations in Texas rose from 45% to 53%. Continuous rainfall in cotton-producing areas of the United States has led to a decline in market speculation. In addition, India’s rainfall in August was 3.4% higher than normal. Due to sufficient rainfall, India’s cotton sown area has increased by 6.8% year-on-year so far. However, Pakistan has been affected by floods, and cotton fields have been severely damaged. According to officials from the Ministry of Agriculture of Punjab Province, recent heavy floods have destroyed 90% of the cotton fields in Sindh, and the proportion of damaged cotton fields in Punjab was 6%. The market has mixed news about both long and short, and the volatility of foreign cotton has declined.

That week, news came from Xinjiang cotton-producing areas that companies were opening scales. Now ginning companies are purchasing hand-picked cotton. The opening scale price is 6.8-7.0 yuan/kg, which is lower than the opening scale price in the same period last year. Although the equivalent cost of lint is also lower than that of futures The market price, but the futures price did not continue to follow the sharp decline. The quantity of seed cotton currently on the market is small, and scale operators are limited. The current cost of lint purchased and processed does not represent the cost of machine-picked cotton in Xinjiang. In addition, the price difference between domestic and foreign cotton is large, and the pattern of external strength and internal weakness is obvious. Both bulls and shorts are waiting for guidance from new cotton news, and the market has temporarily calmed down.

Entering the peak production and sales season of “Golden September and Silver October”, orders from downstream medium and large enterprises have recovered. Although they are not as good as market expectations, they are still better than previous orders. Judging from the quotations in Jiangsu, Zhejiang, Guangdong and other markets, the price difference between imported cotton yarn and domestic cotton yarn remains high. In addition to sea freight, tariffs and other costs, domestic cotton yarn still has a considerable price advantage over cotton yarn produced in Southeast Asia and other countries, which is beneficial to domestic cotton yarn. Export and promote cotton consumption. However, overall, the weak trend of cotton has not changed yet, and downstream consumption still needs to continue to exert strength.

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Author: clsrich