The Spring Festival holiday is approaching, logistics and shipments in many places have stopped one after another, the cotton shipping cycle has lengthened, the purchasing enthusiasm of downstream textile companies has declined, and the prices of individual yarns have loosened, and the market demand for cotton has weakened. At the same time, epidemics have occurred in many places in the country, and industry players have a strong risk aversion mentality, which has caused Zheng cotton to fall below key support levels recently. However, most market participants are still full of expectations for the post-holiday market.
Recently, news that the United States is preparing to reassess Sino-US economic and trade-related issues has attracted great attention from all parties in the domestic market. According to CCTV, the Biden administration will suspend the implementation of U.S. tariffs on $370 billion in Chinese goods during the review period until a comprehensive review is completed. At present, high tariffs on some Chinese goods have not been completely ruled out. If the United States lifts tariffs in the later stage, it will further benefit the recovery of domestic demand.
Based on the current situation, whether it is Sino-US trade, epidemic prevention and control, or domestic downstream demand, there is a probability of recovery and improvement, and these factors have caused great impact on the market before. As unfavorable factors weaken, the market’s negative mentality will gradually change. Therefore, the rebound trend of cotton prices may continue to be maintained, and periodic adjustments are also natural. It is recommended that all parties control stop losses, grasp the operating rhythm in a timely manner, and adjust operating strategies in a timely manner. </p