Cotton Futures Market Is Encountering "Late Spring Cold".

At present, the cotton futures market is encountering "late spring cold", and ICE cotton price has fallen continuously and hit a new low.

Affected by the global stock market crash and the fall in commodity prices, the price of cotton spot market has dropped along with the news that the reserve cotton is out of stock.

Cotton enterprises are eager to sell new cotton, hoping to rush out of stock before coming out of the market.

At present, textile enterprises have basically started production, but at the beginning of the market, the overall market has not yet started.

The intention of downstream customers to enter the market is not strong, and the participation of traders is lower than in previous years. Insiders say that because of the strong market atmosphere, cotton prices still have the possibility of falling, and textile enterprises are mostly waiting for raw materials to purchase.

There are three main factors leading to the decline of Zheng cotton futures price. The main reasons are in the following aspects: first, the current market is very concerned about how to store the national cotton store. Many cotton enterprises worry that the large number of low price stores will further lower the cotton price. This is also the main reason for the recent decline in domestic cotton prices; two, the domestic and international economic growth prospects are still not optimistic, the demand for downstream cotton products is sluggish, and the continuous decline of the international cotton prices has a great impact on the domestic cotton market; three, the domestic textile industry is in the process.

During the period, the purchase order was reduced, the purchasing intention of cotton was not strong, and some factories moved out, which affected the growth of cotton demand.

At present, the market is in the later period of China

There are big differences in the trend.

Although some futures analysts are still looking at the price of cotton, but because domestic cotton prices have been in line with the cost of imported cotton, and domestic cotton planting area is expected to continue to decline, many cotton enterprises think cotton prices are close to the bottom.

Wei Gangmin, chairman of Henan TongZhou Cotton Industry Co., Ltd., said: "investors who may be concerned about the fluctuation of cotton prices have seen the current situation. At present, cotton prices have fallen below 10000 yuan / ton from 13000 yuan / ton in the beginning of the year, and the overall trend is still falling rapidly, and the fall process has not yet been completed."

He said that the sluggish economic recovery and the national reserve cotton throwing and storage still dominated cotton prices. Cotton prices remained unoptimistic before the implementation of the policy of dumping and storage. The real turning point would come from the implementation of the policy of dumping and storage.

Merchants futures researcher also said that the low price of the national reserve cotton will be a big probability event, and cotton prices still have room to fall.

The United States Department of Agriculture recently released the following year's global

The forecast report also shows that the global consumption growth is weak in 2016/2017, the low price of chemical fiber and the coming out of China's national cotton reserve plan will bring sustained pressure on international cotton prices.

The USDA report thinks that because China's cotton production and demand gap has increased, and the price of rumoured rounds will be reduced, the number of Chinese reserve cotton throwing and storing in 2016/2017 may increase.