Confidence In The Cotton Market Is Recovering. Prices Are Rising Now.

Last week (June 17-21), the technology overshoot rebounded and superimposed the resumption of negotiations between China and the United States, the market confidence was restored, cotton and cotton yarn turnover slightly increased, there were a small number of urgent replenishment banks, and prices showed a recovery trend. The price of cotton substitute polyester and viscose is stable. Turnover has also increased in volume and price. Cotton price B index 14239 yuan / ton, weekly rise of 32 yuan / ton, compared with Zheng cotton futures CF1909 contract, spot premium 609 yuan / ton, week reduced 173 yuan / ton, facilitate warehouse receipt registration.

Futures. Last Wednesday, the first resumption of the first call of the US dollar rose sharply under the favorable stimulus of the resumption of trade talks. On Friday, the US cotton fell sharply and dragged back the call. Zheng cotton's main contract CF1909 closed at 13630 yuan / ton on Friday, a record high of 13960 yuan / ton in the current round, the week rose 205 yuan yuan / ton, traded 3648670 hands, increased 547384 hands, increased 17.7%, held 483790 positions, reduced 23218 hands, increased volatility and increased turnover, long term capital shift CF2001 contract, less positions. By the end of June 21st, the top 20 seats in the positions were more than 248582 hands, an increase of 6414 hands, an increase of 2.6%, an increase of 12108 hands, an increase of 12108 hands, a reduction of 4.4%, 38845 hands clearance, 5694 increase in the week, a rebounding of 1000 yuan / ton on the disk, and more profits on the part, and the clearance began to increase. As of the closing of June 21st, there were no changes in the 1687 sets of buying positions, and 48887 hands were sold, with a reduction of 326 hands. As of June 21st, 16804 registered warehouse receipts decreased by 318. Futures fell, and spot prices were better than warehouse receipts, warehouse receipts continued to flow out. The warehouse receipt effective forecast 1159, increased 137, the current discount reduces, the spot sale is difficult, is advantageous to the warehouse receipt registration. After the resumption of trade negotiations, the G20 summit is coming soon. There is much better expectation in the market.

Us disk: the contract fell sharply in recent months, and the July contract closed at 61.3 cents / pound on Friday, down 471 points. With the resumption of Sino US trade negotiations, it is hard to see that the market can only wait and continue to pay attention to the progress of Sino US trade war.

On the spot. Zheng cotton futures rebounded, Sino US trade negotiations resumed, market confidence was stable, expectations for the market outlook increased, procurement tended to be positive, turnover increased and prices rose slightly. Spot price spanaction increased slightly, and the turnover reached 816 hands, which increased significantly. The "double 28" machine quoted price in the internal library is 13900-14100 yuan / ton, the "double 28" hand picking cotton price is 14500-14600 yuan / ton, and the strong 27-28cN/tex's hand picking cotton price is 14100-14200 yuan / ton, and the main spanaction price of Xinjiang cotton is 14300-14600 yuan / ton. Customs clearance Brazil cotton 14500-15100 yuan / ton, the goods are better, other varieties are generally goods.

Operation suggestion. US cotton sale is poor, superimposed on the US disk, falling low and low, and fighting against Zheng cotton confidence. The outcome of the negotiations is unpredictable. The probability of this week's continuation of the callback is large, low or supportive. Pay close attention to information about cotton weather and trade war.