Cotton futures market is rising rapidly

Market analysis: the domestic cotton market rose steadily. On July 27, the average price of China’s cotton index 3128b was 17503 yuan / ton, up 115 yuan / ton compared with the previous day. The transaction of reserve cotton is hot, and the average transaction price is higher than the spot price, which provides price support for the spot cotton. At the end of June, the total commercial cotton inventory in China was about 3.0173 million tons, a month on month decrease of 15.67% and a year-on-year decrease of 6.84%. USDA reported a slight reduction in global inventory in July; The new cotton planting area in China has decreased. The survey results show that the national cotton planting area will be 43.4559 million mu in 2021, a year-on-year decrease of 5.47%. Although the downstream textile industry is in the traditional off-season, the off-season is not light, the inventory of cotton yarn enterprises is low, and the startup rate is relatively stable.

Future forecast: the downstream textile market demand is good, the enterprise operating rate remains high, and the domestic cotton commercial inventory continues to decline. At present, the cotton futures market has reached the highest price in recent years, and the future market of cotton can be expected. Considering that the rising part of the current market exceeds expectations, be vigilant about callback and consolidation.

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