SunSirs: After the US Cotton Fell by the Limit, Zheng Cotton Fell Sharply, and Cotton Prices May Remain Weak
September 05 2022 09:14:15 SunSirs (John)
Price trend
On the 2nd, the price of 3128B lint cotton was 15,976 RMB/ton, up 1.30% from the previous month.
Analysis review
The fundamentals of domestic cotton were still weak, and the low downstream demand made cotton prices lack support for rising. The traditional peak season of the textile industry is not prosperous. After the high temperature, textile enterprises gradually resumed production, but orders for finished products were still scarce, and new cotton was about to be launched to increase supply pressure. On the 1st, in the context of the US dollar index reaching a new high and the crude oil falling sharply, the US cotton fell by the limit, and Zheng cotton fell sharply on the 2nd, and the market's negative sentiment heated up. Internal and external demand continued to be weak, and the global economy declined. The downstream cotton yarn inquiries increased but the actual orders were still relatively small. The consumer side had not improved significantly at present, and the market had a strong wait-and-see mood.
Market outlook
The cotton new year starts, the real estate seed cotton is sporadically opened, and the price difference between domestic and foreign cotton is upside down. It is expected that the short-term cotton market may remain weak.
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