Price trend

On the 7th, the average price of domestic 3128B lint was 17,720 RMB/ton, down 199 RMB/ton from the previous day and down 17.25% from the previous month.

Analysis review

The fundamentals of domestic cotton were weak, and there was insufficient support for cotton prices. Internationally, the increased risk of economic recession and the continuous rise of the US dollar - dimmed downstream demand. ICE cotton futures fell sharply, and the main contract on the 6th fell below the 90 integer mark. Domestic cotton prices were greatly affected by the trend of ICE cotton, and the spot and futures prices followed suit.

The downstream pure cotton yarn market continued to decline, the market orders were lacking, the downstream purchases were reduced, and the inventory of textile enterprises continued to accumulate. The downstream was generally not optimistic about the market outlook, and enterprises were more willing to reduce production.

Market outlook

It is expected that the cotton market is more likely to continue to decline in the short term.

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