Spot Shocks Decline, Short-Term Pressure On Cotton Market Is Still Larger.

Recently, the domestic cotton spot market has been on the decline for a long time. After a series of rebounding last week, the market was weak, but the decline was not large. Today, China's cotton price index CC Index3128B is 11472 yuan / ton, down 7 yuan / ton compared with yesterday, down 27 yuan / ton compared with 11500 yuan / ton on Monday.

According to the feedback from the industry, the current market weakness is mainly controlled by the following aspects: first, the epidemic situation in Europe and the United States is in a good trend, and the panic mentality in the industry tends to be stable. Two, the current epidemic situation, the global closed door led to a serious obstruction of the circulation of goods, the market demand weakened, the withdrawal of single increase, corporate entities were damaged, the mentality is weak. The vicious circle caused by the block of logistics may aggravate the pressure of the market. Three, at home and abroad continue to introduce measures to rescue the market, in order to release market liquidity, stimulating effect is expected to gradually appear. Four, crude oil, after several rounds of negotiations, OPEC+ finally reached a historic yield reduction agreement. In May and June, the scale of production decreased to 9 million 700 thousand barrels per day, and the G20 countries outside the OPEC+ member countries committed to reduce 3 million 700 thousand barrels per day. In addition, Trump instructed the Ministry of energy to open up strategic oil reserves. But on the 13 day, Saudi Aramco announced that the price of light oil courts in Arabia sold to Asia in May would be set at a price of $7.3 per barrel over the average price of Oman and Dubai, and pressure would be imposed on the price by reducing the official price and the competitive market.

Epidemic situation, the global chess, exacerbated the internal and external market linkage. At present, the market needs to be concerned: first, the time when Europe and other trading powers unlock and restore the logistics trade; two, the Federal Reserve continues to inject liquidity into the inflation; three, the impact of the epidemic on the production of cash crops in major producing countries; and four, locusts in Africa.