On the 11th, Zheng Mian still had the dominant short position, and on the 12th, the bulls were elated. The long and short conversion speed was very fast, indicating that the market wind direction could change at any time, and the intensification of shocks has become a fact, and this year’s market still maintains a volatile upward pattern. It is unrealistic to hope that a unilateral trend will form like last year. After all, Zheng cotton has been rising for a year.
According to the consensus of the investment community, last year was a great year for investment. The opportunities this year are not as good as last year, but there should still be good opportunities compared to previous years. According to the World Bank report, major economies will see good year-on-year growth this year. In the context of economic recovery, the demand side will play an important role in supporting the raw material side. “It’s hard to recover when water is poured out” is very appropriate in the current financial market. According to past experience, the inflationary effect of releasing water will generally last for about 2 years.
Zheng cotton began to show a strong rebound momentum, which has little to do with fundamentals, because the supply remains stable and demand continues to maintain a rebound momentum, especially US cotton exports continue to improve, but the market has fallen again and again. Affected by external markets. Not only cotton, but also other commodities have started a major correction. This is similar to stocks. The valuation is too high and the price rises too fast. Of course, there will be adjustments. No matter how good the fundamentals are, it is just a question of how much it will fall. Cotton has fallen approximately 2,000 points in this round of adjustment. The violent shock just illustrates the cruelty of the market. The market has begun to panic, which is a good opportunity for investors to enter the market. Zheng Cotton’s rebound following US cotton just confirms this view.
In addition, the top leaders of China and the United States are about to start a round of talks, which is another huge boost to the market. Since the beginning of the trade friction between China and the United States, the cotton market has begun a turbulent downward process. The long-lasting period and the large decline in the market illustrate the importance of the economic and trade relations between the two countries on the cotton market. Now that news of high-level talks between the two countries has leaked out again, it is reasonable for the market to take advantage of the situation and speculate.
Finally, now that we have entered the spring plowing and sowing preparation stage, cotton planting area and growth conditions will gradually usher in opportunities for weather speculation. In the future, both long and short factors will affect the rise and fall of cotton prices, and there is a high probability that the economy will rise. During the cycle, the commodity market will show a trend of prosperity. The difficulty in market operation is to achieve satisfactory results and the process will be extremely difficult. </p