Recently, the trend of commodities is still divided, and cotton’s performance is mediocre. Even if there are signs of stopping the decline and stabilizing, it seems that there is still a lot of pressure to break through and rise.
Now the market sentiment has undergone subtle changes. The continuous falling market has poured cold water on those who sang bulls in the market. The originally bullish atmosphere is now quietly turning into a bearish sentiment. It is not an exaggeration to say that most speculators are just losers. They will be bullish when it rises, and bearish when it falls. How can they survive in the market without a backbone?
The author believes that, benefiting from the recovery of the economy, the cotton market is still on the upward channel this year. The current adjustment is due to the excessive early growth, and it needs to be adjusted before continuing. The market cannot go forward without adjustment. How far. The long and short factors in the market inherently exist at the same time. When the price rises, all good news will be released. Otherwise, all bad news will be released. Therefore, investors do not need to deliberately care about market news. What reaches their ears can no longer be called news. It has long been dismissed. The market digested it in advance.
Data from the National Cotton Market Monitoring System show that my country’s cotton output in 2020/21 was 5.95 million tons, a year-on-year increase of 107,000 tons, a year-on-year increase of 1.83%; consumption was 7.7758 million tons, a year-on-year increase of 299,100 tons, a year-on-year increase of 299,100 tons, a year-on-year increase of 1.83%. An increase of 4%; the ending inventory was 6.164 million tons, a decrease of 64,600 tons year-on-year; the production-demand gap was 1.8258 million tons, an increase of 192,100 tons compared with the previous year.
From a fundamental perspective, benefiting from the global economic recovery, my country’s tight cotton production and demand pattern has not changed. Even if other forms of cotton resources are included, supply and demand are relatively loose, which will not cause cotton prices to plummet. Therefore, the author believes that we should correctly understand that cotton is adjusting the market now, not falling, and the future operating trend has not changed. Once the adjustment is over, I believe cotton will return to the upward channel. </p
