SunSirs: Zhengzhou Commodity Exchange Cotton Futures Fell Sharply after Rising Continuously, and Domestic and Foreign Cotton Prices Were Differentiated
August 19 2022 08:53:27 SunSirs (John)
Price trend
On the 18th, the price of 3128B lint cotton was 16,081 RMB/ton, up 0.2% from the previous trading day and down 13.38% year-on-year.
Analysis review
The fundamentals of domestic cotton were still bearish. The futures rose slightly and then fell back under the influence of foreign cotton, and the price of domestic and foreign cotton was differentiated. The supply side was sufficient. As of the end of July, the commercial cotton inventory was 3.194 million tons, a decrease of 528,200 tons from the previous month and a year-on-year increase of 691,000 tons. Among them, Xinjiang inventory decreased by 452,300 tons month-on-month, an increase of 1.288 million tons year-on-year.
In terms of demand, the market is looking forward to "golden September and silver October", but the downstream market has not seen significant improvement at present. At the same time, the price difference between domestic and foreign cotton was serious, and the cotton problem in Xinjiang had an obvious impact on demand. The cotton yarn market was generally traded, the cotton grey fabric market was light, and the weaving mills were slow to start up and recover under the influence of power cuts.
Market outlook
The short-term benefits have not appeared, and it is expected that the cotton price will fluctuate to be weak.
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