Zheng Cotton Trading Is Not Accidental Supply Enterprises Are Not Easy To Default.

Zheng cotton main contract price 1609 and 1701 double limit, some market participants believe that cotton price limit is very violent, the incident is too sudden, in fact, in the previous period of cotton prices continued to fall in the process, in the entire industry chain of enterprises desperately to inventory process, the market has laid a sudden rise of seed, and in recent cotton prices rise, many upstream suppliers have breach of contract is meaningful.

Stand on

In the view of investors in capital operation, the pessimism of the black series futures market is quite strong before the price of the black series futures has risen. But in the twinkling of an eye, the cold and old iron and steel bars in the port and steel mills are turning over.

First of all, the lack of cotton production in China for many years has been ignored by the market.

As cotton prices continue to decline, coupled with low cotton subsidies in the mainland, the planting area of Hebei, Shandong, Hubei, Henan and other inland cotton areas has declined rapidly. Even though there is support for target price policy in Xinjiang cotton region, the income of cotton farmers is not very high, and the cotton planting area in Xinjiang can only remain stable.

Judging from the domestic cotton output and demand, the shortage of production has existed for several years, but because of the import of cotton,

The effect of large quantity and insufficient production of domestic cotton market has not been reflected.

Secondly, enterprise inventory is seriously insufficient in the industrial chain.

In the process of falling prices of cotton and its products, who will stock up and who will lose money?

In addition to the large number of state-owned cotton stores, the inventory of enterprises in the whole industry chain is seriously insufficient.

After the price rises, the enterprises in the industrial chain have begun to make up their efforts to replenish the warehouse. The current upstream enterprises are in breach of the contract, which will help increase the price.

Again, the demand is warmed by cold treatment.

After the Spring Festival, the profits of domestic textile enterprises have been improving continuously. Small and medium-sized textile enterprises generally earn about 2000 yuan for processing a ton of cotton yarn, but the market has turned a blind eye to it, and has focused their attention on the sale of state cotton and cotton. Finally, the selling rules of national cotton stores have not yet been fulfilled, and demand has finally pushed prices up.

Finally, the black series futures prices surged and overturned many investors' investment ideas, and the impact of capital on cotton prices was bigger and bigger.

Since late February, the price surge of domestic black series futures has overturned many investors' investment ideas. Overnight, the spot price of rebar increased by 300 yuan per ton.

At present, this market phenomenon is reappearing in the cotton futures market.

This phenomenon can also appear in the cotton market. When the domestic and foreign cotton market has a favorable environment, when the price of the forward cotton contract is sliding to the historical low price area, a moderate amount of money is a better choice.