Zheng Cotton Weak Downward Cotton Reserve Wheel To Support The Market

According to Xinhua news agency, in November 26th, the high-level representatives of China and the United States re energized the economic and trade issues, and said: "the two sides have discussed the core concerns of each other and have reached consensus on solving the relevant problems, and agreed to maintain communication on the remaining issues of the first stage of the agreement." Due to the fact that there has been little change in the formulation of the relevant talks with the previous negotiations, the cotton traders have gradually divided their views on Sino US economic and trade negotiations, and the ICE US cotton external market also rebounded. Zheng cotton futures, after maintaining its concussion for nearly a week, failed to break through the 12900 yuan / tonne pass. It opened up again after opening today, and the lowest CF2001 contract reached 12700 yuan / ton, which made many cotton traders feel helpless.

As of November 27th, the total number of cotton warehouse receipts in the country was 16839, an increase of 851 compared with the previous day, and 5411 effective forecasts, 232 fewer than the previous day. It can be seen that the total volume of warehouse receipts has once again effectively suppressed the upward trend of Zheng cotton, but the overall weakness has slowed down the pace of some industry funds' hedging. At the same time, it also reflects that as the price falls again, the mentality of the industry is more cautious. Waiting for the wait seems to be the best way to deal with it.

By comparing the disk data, we can see that investors' confidence in CF2001 contracts has declined, and the pace of shifting positions to CF2005 contracts has also accelerated significantly. As of November 28th, the CF2005 contract held 592 thousand hands, significantly higher than the CF2001 contract position of 473 thousand hands. After many fierce competition between the two sides, with the growth of the industry's arbitrage strength and the downplay of the macro good news, the bull market has been lighten up in recent years, and the bears are temporarily gaining the upper hand.

The downward trend of Zheng cotton futures price is relatively controllable for some cotton producers who have already hedged arbitrage. And for some enterprises that are going to take corresponding risk precautions in the future, they turn their attention to the upcoming cotton reserves. According to the view of some Xinjiang cotton enterprises, the turn in is about to start. The recent fluctuation of futures price range will not have a big impact on the spot market. Although the current price has dropped, the space is limited. It can be seen that the recent central reserve cotton rotation policy has formed a strong support for stabilizing the cotton market mentality, and most of the flower rolling enterprises in the territory are still making steady production and processing.