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2024-05-23 21:51:28
The Zheng cotton market experienced shocks, and the main contract once fell to the bottom of 14840 yuan and then rebounded quickly. There has been no major change in fundamentals, and the market remains cautious about expectations of increased production and poor demand. The annual supply of new cotton is sufficient, but downstream deposits are not willing, and cotton prices are still under pressure in the short term.
[The price of Zheng Mian 2409 contract fluctuated significantly] This week, the price of Zheng Mian's main 2409 contract experienced significant fluctuations, once falling below 15000 yuan/ton.
market sentimentultraholdandspinThe easing of China's economy and the decline in prices are in contrast, triggering a reassessment of the market's fundamental supply and demand expectations. Although expectations for increased production remain, the sluggish downstream demand is an indisputable fact.
National cotton commercial inventory data showed a decrease of 52 per cent from the previous monthultraholdandspin.350,000 tons, a decrease of more than 10%, and lower than the level of the same period last year.
Affected by demand expectations, yarn mills have a cautious attitude towards purchasing raw materials, and on-demand procurement has become the norm. It is difficult for prices to rebound once they fall, and downstream manufacturers are not highly receptive to high-priced raw materials.
The large fluctuations in the price of Zheng cotton have caused some companies to face the risk of pursuing insurance. If the price continues to fall, it may trigger a chain reaction.
USDA data shows that the impact of drought in U.S. cotton-producing areas has eased, which is conducive to cotton growth, but export sales have declined from the previous week and four-week average.
ICE data shows that inventories of deliverable No. 2 cotton futures contracts have increased.
A report from the Brazilian Cotton Growers Association shows that some areas in Brazil have begun to prepare for cotton harvesting, and most cotton products have been sold.
The market will continue to pay attention to the subsequent development of Zheng cotton prices and the multiple factors that may cause price changes.