Views:0 Author:Site Editor Publish Time: 2020-06-29 Origin:Site
Since Zhengzhou major cotton contract, Sep contract, rose to 11,600yuan/mt in early June, market buying has weakened, and the downstream cotton yarn and grey fabric markets also maintained a weak run. In this case, Zhengzhou cotton futures market remains “high” and the trend has not turned downward as the market anticipated. Some divergences between spot cotton and cotton futures markets are seen.
On the futures market, ZCE Sep cotton contract once dropped to 11,400yuan/mt on the night of May 29, and many pending orders were transacted. Most of them were purchased from spinning mills. However, on Jun 1, ZCE Sep cotton contract climbed up to 11,720yuan/mt and began to wave, and in the trading days since then, there has been no sharp decline. On spot cotton market, transactions increased significantly when ZCE cotton futures market declined on May 29, and part of mills replenished feedstock. From June 1, due to high ZCE cotton futures, spot cotton sales maintain weak, and downstream mills also show weaker buying interests.