1. Price quotes
Last week, the cotton market rose first and then consolidated. On the 5th, the price of 3128B lint was around 16,403 yuan/ton, and on the 9th, the price was 16,561 yuan/ton, an increase of 158 yuan/ton, up 1.61% from last week and 12.64% month-on-month.
2. Market analysis
Domestic new cotton production is expected to decline year-on-year. The USDA quarterly planting area report is not as good as expected. Zheng Cotton's lower cost and demand support. Cotton spot prices have risen following the futures prices starting from Monday. The cotton reserve was launched. From July 5th to July 9th, the total transaction volume was 47782.429 tons, with a transaction rate of 100%. Companies with tight stocks of raw materials are highly motivated to purchase, and reserve cotton resources are of high quality and low price, attracting enthusiasm for corporate purchases. All domestic reserves of cotton were sold continuously, the textile industry demand was off-season, and the superimposed epidemic situation occasionally repeated. Zheng cotton futures fluctuated downward on weekends, and market sentiment fell.
3. Downstream industry chain
The cotton yarn market is generally stable. In July, the market has slightly improved, and the inventory has not continued to rise. Zheng Cotton continued to rise, which drove the confidence of manufacturers, and textile enterprises were more willing to support prices, and prices remained high and firm. It is expected that cotton prices will have a period of shock in the short term. Although the traditional off-season is currently in the off-season, there is limited upper space under the market.