On Tuesday (May 26), the three major U.S. stock indexes rose collectively, with the Dow Jones Industrial Index rising by more than 500 points, and the S&P 500 index breaking through the 3,000-point mark during the session; the three major European stock markets of London, Paris and Frankfurt Collectively, they closed up, with increases of 1% and above; U.S. crude oil futures and Brent crude oil futures also closed up about 3.3% and 1.8% respectively. Although U.S. stocks rose, European stocks rose, and oil prices rose, cotton prices at home and abroad performed generally. The ICE U.S. cotton July contract closed up 0.62 cents/pound. The main reason was that the rainfall in Texas was low, which led to market uncertainty. Its production increase expectations have declined. In the night market, Zheng cotton opened higher and then dropped to 11,600 yuan/ton. Today, the market continued to maintain weak fluctuations.
At present, the epidemic situation in some countries has improved, and cotton textile upstream and downstream enterprises are full of expectations for the recovery of the cotton market. However, in terms of macroeconomic policy stimulus and external news boost, the upward trend in cotton prices has been insufficient, especially in the recent past. Cotton prices at home and abroad showed a weak correction trend. Another thing that needs attention is whether there will be another concentrated outbreak after the epidemic prevention and control restrictions are relaxed in some areas of the United States. As of 16:32 ET on the 26th, the cumulative number of confirmed cases of new coronary pneumonia in the United States was 1.67 million, and the cumulative number of deaths was 98,700; more than 18,000 new cases were added in a single day. There is also a sharp decline in cotton consumption in India, the world’s largest cotton producer. Domestic cotton merchants are eager to export lint cotton to other countries. Some Indian cotton merchants are taking advantage of the weakness of the rupee to export more cotton. In the later period, as the pressure for concentrated cotton sales increases, the quotations There may be a continued downward adjustment, which will also create greater resistance to the rebound of global cotton prices.
Due to the loss of downstream consumer orders, some textile companies have recently reported that the sustainability of orders is once again facing a test. In the early stage, some domestic sales companies still had a small number of orders. However, with the advancement of foreign trade to domestic sales, the contradiction between too much food and too little food is intensifying. . In the case of low raw cotton prices, it is not ruled out that spinners will continue to compete for the market with low prices, which may lead to continuous compression of profits of textile companies, forcing companies to purchase cotton at lower prices, which will have a negative impact on lint sales.
Therefore, after cotton prices experienced an oversold rebound in April, the boosting effect of macroeconomic factors on the rebound of cotton prices is declining. The future direction of cotton prices will surely return to the upstream and downstream supply and demand pattern of the cotton industry. Therefore, whether the demand from downstream textile enterprises can rebound is still a key factor affecting the recovery of the cotton market. </p
