Cotton futures rebounded, spot followed up limited

Last Friday, Zheng Cotton Futures fell to the limit, and ICE US Cotton also fell to its lowest value in nearly eight and a half years. The domestic and foreign cotton markets were shrouded in the spreading epidemic, and fell into a trough for a while. Market participants lamented when will the ill-fated cotton emerge from the haze. As everyone wishes, Zheng Mian began to rebound yesterday, and then gapped up nearly 200 points in early trading today. The main CF2005 contract high in the morning reached 12,715 yuan/ton. The external market on Monday was also supported by textile factory buying and risk willingness to heat up. Decline increased optimism, and the market rebounded. Compared with the rapid rebound in the futures market, the rise of cotton spot is not ideal. Starting from Monday, a large number of cotton-related trading companies adjusted their sales basis. The mainstream price is between 12,500-12,800 yuan/ton based on actual transactions. Zheng cotton futures have rebounded in the past two days, and the pace of bargain-hunting has slowed down, and buyers are digesting short-term cash There are concerns about progress, which poses greater resistance to lint sales. According to feedback from ginning factories and professional warehouses in Xinjiang, lint processing in Xinjiang has not yet resumed, and most ginning factories are facing losses in spot sales. At present, production and processing are basically still in a stagnant state. The logistics of warehouses in northern and southern Xinjiang have not been fully restored, and most trains have been opened, but most of the automobile transportation services have not returned to normal. As a result, the Xinjiang cotton moved to the interior of the warehouse appears to be relatively deserted.　　 Recently, due to the rapid decline in international cotton prices, the price gap between domestic and foreign cotton has widened, and the rotation of reserve cotton has temporarily stopped, and the spot market purchase and sales channels have further narrowed. Although the price difference between domestic and foreign cotton has widened, the spot price of imported cotton in Qingdao Port, Zhangjiagang and other places does not have a big advantage compared with the domestic spot price difference. Brazilian cotton sold in Hong Kong is 200-400 yuan/ton higher than Xinjiang cotton. Only a few Indian cotton and low-quality imported cotton offer lower prices than Xinjiang cotton. The main reason is that the proportion of imported cotton basis difference source transaction volume is small, port traders mostly operate unilateral fixed prices, and low-price sales are difficult. Many cotton traders can only stay on the sidelines for the time being, waiting for the price to rise before operating.　　 At present, the recovery of demand from downstream textile companies is still slow, and companies returning to work after the holiday are cautious about market trends in the second quarter and are less willing to replenish raw materials in the short term. The market's doubts about whether the epidemic will continue to expand globally will deepen domestic export orders are increasing. Therefore, the spot price may continue to rise in the later period or face more setbacks. Article Keywords: 　Cotton