According to the monitoring of SunSirs, the price of 3128B lint cotton on the 20th was 15,857 RMB/ton, down 0.13% from the previous trading day and down 28.91% year on year.
Analysis review
The poor transportation of cotton in Xinjiang made the cotton resources in the mainland a little tight. The progress of new cotton listing was still slow, which formed a certain support for the price, but the lack of improvement on the demand side put pressure on the cotton price. On the 20th, the average purchase price of machine picked seed cotton in North Xinjiang was 5.85-5.95 yuan/kg; The average price of machine picked seed cotton in South Xinjiang was 5.6-5.7 yuan/kg, and the average price of hand picked seed cotton was 6.75-7.2 yuan/kg. The higher purchase price supported the spot market. Due to worries about the risk of market price falling back in the later period, the ginning plant sold actively this year.
On the 19th, the ICE cotton futures fell sharply, breaking 80 cents. The cotton futures of Zhengzhou Commodity Exchange subsequently fell sharply. The downstream cotton yarn market demand was insufficient, and the market was weak. Textile enterprises mainly purchased and replenished the warehouse for rigid demand.
Market outlook
On the whole, the cotton price is constrained by the weakening of downstream demand, and the market lacks confidence in the future market. In the short term, the cotton price will fluctuate and weaken.
