Cotton Shock Lowered &Nbsp; Waiting For Supply And Demand Report

US cotton (25875,70.00,0.27%) futures closed on Wednesday, with market participants nearly July contract extension, while waiting for the US government to publish two reports.

Market participants will pay close attention to the monthly supply and demand report released by the US Department of agriculture tomorrow and last week. Export sales Presentation. ICE index cotton futures CTZ1 rose 0.22 cents in December, at 1.3015 dollars per pound.

Today, Zheng cotton 1109 contracts go higher and lower. It opened at 25900, the highest 25955, the lowest 25765, closing at 25840, up 35 points from the previous trading day (+0.14%). Cotton index increased by 2204 hands, turnover of more than 640 thousand hands.

　　 Spot market On June 9th, China's cotton price index (328) was 24562 yuan / ton, down 13 yuan / ton. In June 8th, the import cotton price index (FCIndex S) was 182.46 cents / pound, down 6.15 cents / pound; 1% tariff 30075 yuan / ton, down 1007 yuan / ton; discount sliding duty 30423 yuan / ton, down 997 yuan / ton.

From the current market fundamentals, the current focus of the market is downstream consumption. Due to the downturn of textile consumption in the early stage, the sales rate of domestic cotton mills and cloth factories was lower than that of the same period last year. The inventory accumulation of cotton mills and cloth factories also indicated that the domestic downstream industries were prepared to purchase cotton for a further reduction. But as time goes on, the consumption inventory of domestic downstream is gradually consumed, and many cotton mill inquiry prices have become positive, and the purchasing intention has increased. In the short term replenishment demand boost, cotton is expected to usher in a short-term rebound. On the whole, cotton fundamentals remain tight this year and will continue to operate at a high level.

Judging from the trend of the disk, the domestic market is open today. Shock The decrease was mainly to 25765, and the position continued to shift to forward contracts. In the US cotton continuous decline, the domestic cotton fell to a certain extent, but less than the United States cotton. Combined with the fundamentals, the supply and demand of cotton is still tight this year. It is expected that the latter will still be dominated by high volatility. Operational recommendations still rely on wait-and-see.