Zheng Cotton Prices Fell Again And Again, The Low Circulation Of Gauze Fell.

Last week (June 3-7), the normal callback of the US cotton rebound made the fragile Zheng cotton harvest fourth down limits in one month, and three in the four trading days.

The fall in cotton prices has created conditions for the decline of cotton yarn prices. Meanwhile, the drop in cotton yarn prices has put pressure on cotton sales and prices, and the price of cotton and cotton yarn has been declining.

Affected by the fall in cotton prices, the price of polyester and viscose has been lowered.

The spinning mill continues to reduce the inventory of finished products by limiting production, so as to reduce raw material procurement and digest raw materials inventory and resist the risk of rapid price decline.

At present, the sales price of cotton and cotton yarn has been reduced, and the loss of cotton in the futures contract is serious.

At the same time, there was a trend of volume and price falling.

This week, the bottom price was 13828 yuan / ton, up 3 yuan / ton.

Cotton price B index 14234 yuan / ton, weekly fell 361 yuan / ton, compared with Zheng cotton futures CF1909 contract, spot premium 1302 yuan / ton, week reduced 199 yuan / ton.

Futures.

Last Friday, Zheng cotton's main contract CF1909 closed at 12935 yuan / ton, set a new low of 12775 yuan / ton, fell 560 yuan / ton, traded 2321940 hands, reduced 361152 hands, reduced 18.4%, held 563832 positions, increased 14438 hands, increased volatility, turnover, positions double increase.

By the end of June 6th, the top 20 seats in the positions were more than 232025 hands, an increase of 20117 hands, an increase of 9.5%, an increase of 29076 hands, an increase of 11.6%, and an increase in the number of short and medium bills, reflecting a marked increase in market share.

Clearance of 46641 hands, weekly increase of 8959 hands, clearance increased again, the disk still has downward space.

As of the end of June 6th, buying 2321 sets of holding positions, an increase of 421 hands, 43523 sets of policy packages, an increase of 2524 hands, sell more guarantees.

As of June 6th, 17572 registered warehouse receipts decreased by 557.

As futures fell, the ratio of spot to warehouse receipts was obvious, and warehouse receipts continued to flow out.

The warehouse receipt effective forecast 890, reduced 53 sheets, the current time is big, the newspaper can reduce the resources, the forecast total number has dropped.

The difficulties of the basic market and the market panic have led to the weakness of Zheng cotton. It is expected that Zheng cotton will be low again with the help of the US cotton's return and speculation funds.

Us disk: the technical side of the callback plus the fundamentals to stimulate the US cotton deep callback, last Friday ICE7 month contract closed at 66.12 cents / pound, week down 205 points, is expected this week may be back after the inertia to seek low support.

The Sino US trade war has affected the purchase of US cotton by Vietnam, Palestine, Bangladesh and Indonesia.

Continue to pay attention to the progress of Sino US trade war.

On the spot.

At present, cotton spot trading has been greatly reduced, and small and medium sized enterprises with small stocks are mainly purchasing by rigid demand.

Due to the drop in freight rates, the price of the mainland library and the Xinjiang library is basically close, and the paction is mainly concentrated in the point price resources of the inland Treasury.

The main paction price of Xinjiang cotton is 14000-14500 yuan / ton.

Customs import cotton hedging fluctuates with futures. The main paction price is close to Xinjiang cotton, with little advantage and difficult sales.

Affected by the drop in cotton and cotton yarn prices, the price of substitutes fell, viscose 11300 yuan / ton, down 300-400 yuan / ton, polyester 7200 yuan / ton, and weekly fell 200-300 yuan / ton.

This week's auction price increases slightly, which has a supporting role for new cotton spot and futures.

As domestic cotton prices plummet and domestic and foreign prices shrink, the competitiveness of domestic cotton and textiles will gradually increase and import yarn will be reduced.

Operation suggestion.

Market analysis, Zheng cotton's continuous drop is due to export obstruction and consumption reduction. The external cause is the use of market sentiment to boost speculation funds, and the plunge in futures adds to the panic of the market and forms a vicious circle.

It is expected that there will be a downward spiral this week.

Pay close attention to weather, trade and war related information.