Cotton Market Early Attention To The Side Effects Of Loose Policy, Cotton Market Is In A Sensitive Period In The Short Term

Cotton is a strategic material related to the national economy and people's livelihood. It is not only the most important fiber crop, but also an important oil crop. Not only are more than 200 million farmers directly involved in cotton production, but also a large number of downstream textile enterprises are concerned about cotton prices. Due to the large fluctuation of cotton spot price, there are many factors affecting cotton price. In addition, China's cotton import volume is large, and cotton textile exports are more, cotton price has been the market of concern to the majority of textile people. Therefore, the global textile network has set up the column "early attention to the cotton market" to integrate the information of the cotton market and release the latest information from the perspectives of supply and demand, national policies, international market and alternative products.
According to statistics, from March 1 to 5, 2021, the settlement price of the main cotton futures contract in Zhengzhou Commodity Exchange was 16308 yuan / ton, down 112 yuan / ton, or 0.7%, compared with the previous week; the average price of national cotton price B index, which represents the market price of standard lint in the mainland, was 16176 yuan / ton, down 216 yuan / ton, or 1.3% from the previous week. At the same time, the settlement price of the main contract of New York cotton futures was 89.54 cents / pound, down 1.92 cents / pound or 2.1% compared with the previous week; the average international cotton index (m), representing the average CIF price of imported cotton in China's main ports, was 95.03 cents / pound, down 3.45 cents / pound, or 3.5% from the previous week. The import cost of RMB 15303 yuan / ton (calculated by 1% tariff, including port miscellaneous and freight), was lower than that of the previous week The international cotton price was 873 yuan / ton lower than that of domestic cotton price, and the price difference was 491 yuan / ton larger than that of the previous week.
This fall in cotton prices has something to do with US Treasury bond yields soaring again, inflation expectations hitting a 10-year high, US stocks plummeting in response to the call, and the continued weakness of global stock markets. At the same time, the ice period cotton fell sharply, domestic zhengmian long capital continued to flow out, superimposed on the rapid rise in cotton and cotton yarn prices, resulting in a wait-and-see mood in the downstream, cotton yarn delivery slowed down compared with last week.
Global textile network analysts believe that cotton, as a bulk commodity, is closely related to the financial market. Recently, the United States passed the third round of large-scale economic stimulus plan, namely, the first important legislation proposed by President Biden, the new crown rescue bill with a scale of 1.9 trillion US dollars, which has greatly stimulated the financial market, and a large amount of capital has flowed into the market, which has triggered the passage under the current productivity conditions Inflation is inevitable. On the other hand, cotton, as an important textile raw material, is inseparable from the weaving Market. If the raw materials rise sharply, the textile people are not willing to hoard goods, and the majority of them hold the wait-and-see mood, and the cotton yarn inventory rate in the market increases, resulting in a game mentality between the two sides. Recently, the cotton market shows a sensitive situation. It is not clear whether it is up or down, and investment needs to be considered in many ways. (Disclaimer: this information and market data analysis is for reference only)