Strong Internal And External Linkage, Domestic Cotton Prices Are Easy To Fall And Difficult To Rise

During the May Day holiday, ice American cotton showed a strong overall performance, with the highest futures price reaching 155.95 cents / pound, and the price continued to rise to an 11 year high. On May 6, due to the demand concerns caused by the sharp strengthening of the US dollar, ice meimian touched the limit and closed at 148.76 cents / pound, down 3.96%. Under the influence of the external market, Zheng Mian followed the US cotton to rise first and then fall after the festival. On the 6th, it closed at 21300 yuan / ton, down 2.72%.
Since late March, the price difference between domestic and foreign cotton has remained in the upside down range. Affected by the strong demand for American cotton, the large number of contracts without price counting and the cancellation of cotton import tariffs in India, the price of American cotton has been rising. On the contrary, in the domestic cotton market, the textile market has remained weak, the price of cotton has been suppressed, and the pattern of foreign strength and domestic weakness has gradually formed. According to the data monitoring of Mysteel agricultural products, as of May 7, the price difference between internal and external cotton was - 1831 yuan / ton, and the upside down space was still large. Under the operation pattern of strong at home and weak at home, the price of American cotton has strong support for the bottom of domestic cotton price, and the overall operation trend of domestic cotton price basically follows the external market.