Reprint|China Cotton Information Network, China Cotton Network, China Yarn Network
Recently, cotton has taken the lead, but when other commodities have pulled back, it has been uncharacteristically and has come out of a strong rebound. In the current contradictory situation of weak fundamentals and strong disk, what trend will cotton prices show? The traditional "Golden Nine Silver Ten" peak season is coming, the market expects that consumption may recover slightly, and it will also play a certain role in supporting the price of yarn in the short term. The downstream has also picked up, and the operating rate of weaving factories in some areas has increased to more than 60%.

This year's cotton spinning industry is really not easy. First, the outbreak of the epidemic in Shanghai from April to May had a great impact on the national economy, and consumption was squeezed. Many cotton spinning companies have dropped their operating rates to historically low levels. In order to avoid losses, some companies even started production and holiday mode. The peak production and sales season in the first half of the year was lost because of the epidemic, and cotton consumption fell significantly behind the same period last year. In addition, with the continuous emergence of epidemics in other parts of the country and the escalation of prevention and control measures, cotton consumption continues to be under pressure.

At the end of June, the United States officially issued a bill to ban Xinjiang cotton, which led to a significant reduction in foreign trade orders in the US and European markets, further suppressing the demand for Xinjiang cotton. The above

comprehensive factors have had a great impact on the cotton price in Xinjiang, and the cotton price has fallen to the low point of the year. However, with the bullish impact of the US cotton report, Zheng cotton began to rebound from last week.

ICE cotton futures opened higher and fluctuated overnight on Tuesday, and closed higher than the previous day. On August 17, Zheng cotton opened higher and lower, and fell back in late trading. The closing price of the main contract was 15,530 yuan/ton, an increase of 0.29%. In August, the overall market of Zheng cotton went up and down, and this time the performance was obviously very strong. It rebounded by about 1800 points in just one week, which is closely related to US cotton. After the USDA released the August report last Friday, the US cotton ICE was directly closed to the daily limit. The market expects that the US cotton rally in August may continue.