China And The US Will Hold A Thirteenth Round Of Trade Negotiations. Zheng Cotton Has Gone Up Slightly And Is Hard To Spot.

On the morning of September 5th, the CPC Central Committee Political Bureau member, the vice premier of the State Council, and the Chinese leader of the Sino US comprehensive economic dialogue, Liu He, spoke with the US trade representative, Mr. lettchet, and finance minister Mnuchin. The two sides agreed to hold the thirteenth round of high-level consultation on Sino US trade and economic cooperation in Washington at the beginning of October, after which the two sides maintained close communication. This news boosted, this morning Zheng cotton rebounded slightly, the main contract CF2001 hit a high point of 12725 yuan / ton. From the beginning of this week nearly 12400 yuan / ton low point so far, the shock increased by about 300 yuan / ton, how do the market parties think about this? According to the survey, the author classifies the following as follows:

Cotton trade enterprises: cotton prices fell sharply this year, many trade enterprises suffered serious losses, and the US and China News changed repeatedly. Traders were more cautious about the negotiation. At present, we should seize the mentality of customers buying up, not buying or falling, and digest inventory as soon as possible. Some large-scale enterprises have sold most of the spot products, and cotton producers will turn their attention to new cotton with lower cost.

Textile enterprises: Zheng cotton prices rebound little, and there are still many uncertainties, the yarn market will not lift too much effect, basically will not adjust sales strategy. Since the US side has not adjusted any tariffs on textiles and clothing exported to the US, it is cautious about the latter market. Raw cotton reserves should be maintained at the beginning of the operation without significant increase in inventory. It is reported that there are some enterprises in recent years to withdraw funds, and the phenomenon of price dropping is also common. Although it has entered the September, the industry has not improved significantly.

Cotton ginning Enterprises: at present, the oversupply of cotton has greater pressure on the ginning plants. Besides the fact that some of the ginning plants still exist in Xinjiang, more enterprises are concerned about the price trend of new cotton after listing. In the short term, Zheng cotton had a concussion, which made it difficult to price new cotton. This year, the expected price of the scale has dropped sharply. But how to protect the benefits and let cotton farmers accept the price is a headache for the present cotton mill. Since September, the quantity of cotton seed sale has increased in the mainland, and Xinjiang enterprises are still on the waiting stage. Even though there are already scattered enterprises in the territory, they are only committed to cotton farmers in a certain price range.

Cotton growers: the cost of cotton planting is increasing, the price of opening up is lower than expected, and the mindset of cotton farmers has been hit. However, the overall selling process will not change much if the price is subsidized by the target price. In addition, some of the cotton growers have considered the effects of the later frost weather or sold them before the end of November.

Investors: the fundamentals are hard to change and the trade disputes between China and the United States are repeated.

In conclusion, the trade representatives of China and the United States are again energizing. The attitude of the market is cautious. The support for short-term Zheng cotton is relatively limited, and the pressure on the spot market is higher. The imbalance between supply and demand is hard to change at present, and the interference of the relevant information in the late stage is still needed.