Market Observation: Analysis Of The Overall Performance Of Cotton Market

However, there is no market for cotton now. The overall performance is sideways, but the fundamentals can be said to be quite clear. We need to focus on it. Don't lose the chance when it comes.

At present, the commercial inventory of domestic cotton is at a medium level compared with the same period in recent years, which means that the supply of cotton is relatively sufficient. At the same time, the growth of cotton in the new season is also good. There is no extreme weather in the production area at present, so it may be difficult for the supply side to provide strong support for cotton at present.

At the demand level, both weaving enterprises and spinning enterprises are rapidly accumulating their finished product inventory, which leads to their operating load not only at the lowest level in recent years, but also a slight decline in the month on month ratio. At the same time, the raw cotton inventory of spinning enterprises is also at a high level, which indicates that, It is not very likely that the downstream will continue to purchase cotton in large quantities.

In a word, the supply and demand pattern of cotton is relatively weak and very clear because the supply of cotton is relatively sufficient, which can not provide any support, and the demand is expected to weaken.

In this context, it may be a more reasonable choice to look for potential opportunities in the process of rebound.