Cotton Market Will Remain Weak In The Short Term. Why Is Cotton Price Hard To Rise?

Today's futures market has seen an increase in agricultural futures. Osaka G20 summit to boost market sentiment, global agricultural prices have rebounded as a whole, cotton futures market rose slightly, textile enterprises auction cotton reserves to maintain a high degree of enthusiasm, but cotton consumption signs of recovery is not outstanding, because the market is deeply aware of the complexity of international economic and trade issues, enterprises in the production of orders is more cautious.


There are three reasons why cotton is difficult to rise.


First, raw materials are rising, and the supply of raw materials is adequate.


Two is the loss of enterprises, the greater willingness to inventory. The spot sale of domestic lint was sluggish. As of the end of last week, the national sales rate was 74.4%, down 8.9 percentage points from the same period last year, which is 17.2 percentage points lower than the past four years, of which Xinjiang sells 72.5%;


Three, the textile mill orders have not improved. At present, yarn enterprises are still dominated by orders, and the number of customers picking up goods from downstream customers has increased and their confidence has been boosted, but the overall sales are not enough to support yarn price return.


Outlook for the future


The pure cotton yarn market continued to be weak, the price basically maintained, and the high-end yarn was slightly better than before. However, the sales of conventional yarn was still poor, and the downstream demand of imported yarn was not enough. Due to the lack of effective downstream support, cotton prices are hard to get out of the declining trend, especially in the traditional off-season in July, and the demand for replenishment in the downstream is weak. At present, the supply of raw materials in the upper reaches of the country is adequate, the orders in the downstream market are insufficient, and the cotton prices in Zhengzhou and Shandong are not up to much. Therefore, the cotton market is difficult to rise. Investors are advised to leave the field temporarily. Later, we continued to pay attention to the economic and trade problems and the recovery of downstream orders. Considering the current market situation, cotton prices will remain weak in short term.


Warm tip: please keep away from the OTC, and guard against being cheated.