Cotton Is Now In The Doldrums, And The Price Difference Between Inside And Outside Is Going To Exceed 800.

Yesterday, Zheng cotton CF2005 contract closed at the limit, the price of new low, closing price of 11095 yuan / ton, compared with the previous trading day fell 4.02%. The spot quotation has dropped to less than 12000, but due to the influence of downstream orders, procurement is not active. On the 19 hand, when Xinjiang cotton began to enter the auction, the bidding was quite positive, and the 15 thousand tons were all traded. The average transaction price was 12353 yuan / ton on that day, compared with the previous day, the price was 546 yuan / ton, the highest transaction price was 12411 yuan / ton, and the lowest transaction price was 12241 yuan / ton, with a decrease of over 400 yuan / ton. Although the transaction price dropped a lot, but compared to spot price, it still has certain advantages. Immediately, the 20 day round of planned purchase volume was adjusted to 18 thousand tons, which further stabilized the confidence of the enterprises.

However, the epidemic is spreading all over the world. In addition to Italy, Spain, Germany and France, the United States has also become a country with more than 10000 confirmed cases. Yesterday, the Federal Reserve again launched a joint effort with the nine central banks to establish a temporary dollar liquidity arrangement. US stocks fell back. However, affected by the epidemic, pessimism of demand and the weakening of the US dollar, the US cotton fell overnight, and the ICE 05 contract fell 1.71 cents, or 3.02%, and settled at 54.93 cents, a ten year low. On the 20 day, China's cotton price index also dropped sharply by 398 yuan / ton compared with the previous day. Zheng cotton continued its weak downward trend, and was affected by the continuous decline of cotton futures prices at home and abroad. The Cotlook A index is also expected to continue to decline. At present, on the 18 and 19 days, the price difference between cotton and domestic products has been over 800 yuan / ton for two consecutive days. The price difference on 20 days is particularly important. Whether the turn in will be suspended again, we need to pay close attention to the trend of spot price at home and abroad, and make preparations in advance.