Why Is The Cotton Market Still Optimistic In The Future Due To The Decline Of The Epidemic Market?

Affected by the epidemic, enterprises in various places are still in a state of production stoppage. Moreover, on Monday (3), Zheng cotton's opening limit was a great oscillation to the market. As a result, pessimism is spreading.
The author believes that the difficulties are temporary and we remain optimistic about cotton.

First, Zheng cotton is slowly rising, and the haze is gradually fading away. Data show that 3 days, Zheng cotton limit. The main CF2005 contract closed at 12565 yuan / ton, or 6.51%.

However, on the 4-6 day, Zheng cotton rose rapidly. As of 6 days, the main CF2005 contract closed at 13120 yuan / ton, compared to 3 yuan 12565 yuan / ton closing price rose 555 yuan / ton. In addition, intra day trading volume was moderately enlarged and holdings increased.

Indicate, Market confidence is slowly recovering. 。

Two, turn in to show "volume increase price rise" trend. Statistics show that after the Spring Festival, the turnover rate of Xinjiang cotton has been generally higher in 4 working days, with a turnover rate of 100% on 3-6 working days, of which three working days. Among them, in February 5th, Xinjiang cotton was listed in 15000 tons, and the actual turnover was 13800 tons, with a turnover rate of 92%. The average transaction price was 14024 yuan / ton, up 301 yuan / ton compared with the previous day.

The storage cotton is in good condition and brings hope to the market. 。

Three, raw materials inventory of downstream enterprises is not high. It is reported that raw materials inventory of textile enterprises in most parts of the country remains low before the Spring Festival. Among them, large enterprises are generally in 30-40 days, small and medium-sized enterprises in 20-30 days, some small factories can only maintain 10 days and a half months.

According to the feedback from enterprises in Shandong, Henan and Tianjin, factories have not yet started operation on the 7 th, but the purchasing department has arranged telephone enquiries everywhere.

Once the government returns to the government, the purchase of raw materials will be arranged. In other words, After the end of the epidemic, the textile mill is likely to have a centralized procurement process, excluding cotton price retaliatory rise. 。

To sum up, although the epidemic market is withering away, cotton is promising because of the epidemic. Blind pessimism is not desirable.