On August 18, Zheng Cotton’s main contract CF2201 closed at 18,290 yuan/ton, an increase of 15 yuan/ton from the previous day. According to the “target price of 18,600”, the difference is only 210 yuan/ton.
As cotton futures spot prices continue to rise, many cotton farmers have higher expectations for the opening price of seed cotton this year. According to a survey, nearly half of cotton farmers and ginning companies believe that this year’s opening price will be around 7.7-8 yuan/kg, and the market generally expects it to reach more than 7 yuan/kg, which is more than 1.5 yuan higher than last year.
So, what will be the price of seed cotton this year? Why are cotton futures prices soaring now?
At present, market expectations are the most important influencing factor. The market generally expects that after the Xinjiang new cotton comes on the market in 2021/22, it is very likely to repeat the “rush to harvest” plot that only appeared in the second half of the flowering period. In addition, this year’s cotton growth progress is delayed, and the flowering period may be shortened, so it is possible to “grab the flowers as soon as the scale is opened.” </p
