Since mid-June, Zheng Cotton has once again experienced a roller coaster market. Although the amplitude of the oscillation has narrowed compared with April and May, it is beneficial to cotton companies to speed up shipments and cotton-using companies to replenish their stocks at low prices. At present, the long and short sides are once again engaged in a game around the 16,000 yuan/ton mark. The market direction is still unclear, and it is still somewhat difficult to pull the Zheng cotton oscillation range up to 16,000-16,500. As policy expectations continue to increase, both long and short parties in Zheng cotton and Zheng yarn have become more cautious in entering the market.
What are the factors currently restricting the trend of Zheng Cotton? The author briefly summarizes it as follows (the central bank’s monetary policy and the weather in Xinjiang cotton areas will not be discussed):
First, the global epidemic rebounds, which may hinder the recovery of economy, trade, exchanges, transportation, etc. The World Health Organization said the global COVID-19 epidemic is showing signs of slowing down, with new daily cases falling to the lowest since February and the number of deaths also showing a downward trend. However, the more contagious Delta strain is causing a surge in cases in more and more countries, and the global anti-epidemic situation is still grim;
Second, my country’s cotton textile and clothing companies from July to September 2021 The order-taking situation is not ideal. As India and other Southeast Asian countries accelerate the resumption of work and production, orders are flowing back again; moreover, it is difficult to improve Sino-US relations in the near future, and textile and clothing exports face many variables;
Thirdly, the trend of domestic bulk commodities is still full of uncertainty Uncertainty. Although various departments are working hard to guide commodity prices back to supply and demand fundamentals, bullish sentiment in the market remains high. Bullish reasons include strong consumer demand, large-scale government spending and the trillion-dollar infrastructure plan being considered in the United States. </p
