For three consecutive working days after the Spring Festival (February 3-5), the price difference between domestic and foreign cotton fluctuated around 700 yuan/ton. Since March 2, the price difference between domestic and foreign cotton has been close to 800 yuan/ton for the first time.
According to Article 11 of the “2019 Xinjiang Cotton Rotation Implementation Rules”, when the domestic cotton price is higher than the international cotton price by 800 yuan/ton for 3 consecutive working days, Trading will be suspended from the fourth working day; when the difference between the domestic cotton price and the international cotton price falls within 800 yuan/ton, trading will be restarted on the first working day after the drop.
Affected by the new coronavirus epidemic, Zheng cotton futures fell across the board shortly after the Spring Festival. Domestic spot prices subsequently fell. According to the calculation formula such as the central reserve cotton incoming price, “domestic and domestic cotton price difference = domestic market cotton spot price index – international market cotton spot price index”, the price difference between domestic and foreign cotton on February 3 was 741 yuan/ton. Since February 4, Zheng cotton futures have rebounded. The domestic cotton spot price index has stabilized at around 13,400 yuan/ton, and the international cotton spot price index has also fluctuated around 12,750 yuan/ton. The prices on February 4 and 5 The price difference between domestic and foreign cotton prices is 718 yuan/ton and 626 yuan/ton respectively. Enterprises have obvious advantages in participating in Xinjiang cotton rotation.
With the recovery of Zheng cotton futures and domestic cotton spot prices, if the increase in domestic cotton prices is greater than the increase in international cotton prices, or the decrease in domestic cotton prices is less than the decrease in international cotton prices, then domestic and foreign cotton prices will The cotton price difference may exceed 800 yuan/ton. China Cotton Network reminds the majority of companies participating in Xinjiang cotton rotation that when the development of the epidemic is uncertain in the short term, they should make profit sales in a timely manner to ensure that they sell bags as early as possible.
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