Price trend

According to the monitoring of SunSirs, the price of 3128B lint cotton on November 8 was 15,429 RMB/ton, up 0.21% from the previous trading day.

Analysis review

Recently, due to the strong rise of American cotton, the cotton futures price center of Zhengzhou Commodity Exchange moved up as a whole, which led to the rise of seed cotton price to a certain extent. The decline of domestic cotton spot market slowed down and rebounded slightly. The cotton fundamentals in China had not changed significantly. After the rebound trend of American cotton was postponed, the weak situation of Zheng cotton remained unchanged.

The downstream cotton yarn market was weak. Factory production and logistics and freight transportation in some regions continued to be affected by prevention and control. Enterprises were weak in mentality and purchasing enthusiasm. Most of them purchased on demand and they only purchased when they use it.

Textile and clothing export data in October showed poor performance, down 10.79% month on month, falling for three consecutive months, indicating a significant weakening of export demand. Under the Xinjiang cotton ban, the export of cotton products was blocked. In September, America's imports of cotton products from China decreased by more than 30% year on year, with a large drop.

Market outlook

In the long run, cotton supply pressure remains, demand side weakness continues, and cotton prices are expected to remain volatile and weak.

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