Zheng cotton futures continued their upward trend after opening yesterday, with the main CF2109 contract closing at 15,435 yuan/ton, an increase of 235 yuan/ton. As of yesterday’s closing situation, Zheng cotton futures have closed positive lines for three consecutive days. After experiencing many adverse impacts such as the Xinjiang cotton incident, reduction of downstream orders, macro-inflation risks, and the resurgence of the epidemic, it is not easy for Zheng cotton futures prices to once again stand at the 15,000 yuan/ton mark and recover steadily.
Judging from market news, in recent days, BCI has quietly removed statements to boycott Xinjiang cotton and some brands have expressed continued support for Xinjiang cotton, which has gradually alleviated concerns in the domestic cotton textile market. At the same time, it also reflects from the side that my country’s cotton spinning industry is integrated with the current global textile and apparel market. The mutually beneficial and symbiotic pattern is difficult to break. China’s textile and apparel industry has strong competitiveness and resistance.
From the perspective of changes in fundamental production and demand, due to the phased end of the textile and apparel peak season, the number of new orders from downstream textile companies is relatively limited. Subsequent new demand remains unclear, and cotton spot purchases and sales are flat. Cotton planting will be carried out on a large scale in the new year. The intention to plant cotton in the United States has declined, and some investment funds are concerned about the adverse effects of weather. This has further strengthened expectations of a supply decline and may become a key influencing factor in the future.
From the perspective of related substitutes, the prices of many chemical fiber textile raw materials such as polyester staple fiber and PTA have recently rebounded, providing certain support for cotton prices. Expectations for future oil demand, coupled with a positive U.S. crude oil inventory report, have led to continuous rises in international oil prices, continuing to drive up commodity prices. From this point of view, the bad news in the cotton market is gradually being digested, and cotton prices are expected to rise steadily in the future. </p