Market Analysis: Internal And External Cotton Has Not Yet Broken Away From The Low Position, Lack Of Upward Drive

ICE cotton futures fell on Thursday, with crude oil and financial weakness dragging down cotton prices. American cotton is in shock consolidation. Domestic cotton rose briefly yesterday after gradually recovering its decline, but the external market did not cooperate. The demand expectation of gold, silver and silver was rekindled by the market. But after all, the tariff policy has a negative impact on cotton, so it is less likely that cotton will rise significantly, and it is more likely to maintain a narrow shock. If encountering an upward trend, you can reduce your position if you have more orders.

Both internal and external cotton stocks have risen from the bottom. Zheng Mian's performance is weak and has not yet broken away from the low position. The market lacks upward drive. The national reserve cotton rotation policy has not been clearly defined, and the domestic market has expectations for gold, silver and silver, but the order quantity has not been verified, and the downstream textile enterprises have accumulated yarn inventory.

After foreign trade companies and suppliers digested the 10% tariff increase imposed by the United States on Chinese imports in February, only one month later, the United States imposed another tariff increase 10% tariff, making it more difficult to implement the signed contract; In addition, many countries have begun to impose tariffs on small cross-border commodities, which is expected to spread.

The USDA report in March raised the global output and consumption, slightly reduced the ending inventory, and eased the supply and demand easing, which was similar to the previous judgment of the Outlook Forum on global cotton consumption. It is expected that in the near future, the market will be driven mainly by macro factors, and speculation about new crop yield, weather, moisture content and other hot spots may be postponed until the end of the month USDA planting forecast report.