How To Treat Zheng Mian In The Near Future?

Since the beginning of this week, the fluctuation of Zheng cotton has been obviously intensified. Therefore, the focus of Zheng cotton industry will begin. At present, the market has two views: one is that Zheng cotton or will usher in a wave of market; the other is that Zheng cotton or will still run in the bottom range. What's going on? The author's analysis is as follows

The recent friction between China and the United States mainly comes from two aspects: 1. Since the Consulate General of Houston was asked to withdraw in 72 hours, the market has been in uproar. Where will Sino US relations and Sino US trade go? The pessimism of the industry has increased significantly; 2. The recent spot price of Xinjiang cotton has risen slightly. According to the introduction of enterprises in Hebei, Shandong and other places, the recent "double 29" and "double 28" Xinjiang hand picked cotton and machine picked cotton market prices have increased by 50-100 yuan / ton, and the market point price trading volume and price have also increased simultaneously, which has aroused the attention of the market.

However, we believe that some recent changes in the market can not completely change the direction of Zheng cotton. Therefore, the recent fluctuation of Zheng cotton is dominant, and the conditions for big rise and fall are still not available.

So, how to look at the future?

First, Zheng cotton in the bottom range, the future rise will be the mainstream. From the current point of view, the September contract is still fluctuating around 12000 yuan / ton, which is in the cost line. Price is lower than cost, contrary to common sense, will be difficult for a long time, therefore, in the long run, Zheng cotton will inevitably rise.

Hope for the market in September. "Golden nine silver ten" is the traditional peak season. By then, the epidemic situation may be obviously improved, and the market demand will be opened, which will drive the whole industrial chain into a benign track.

Third, the international situation cannot be ignored. Since the beginning of this year, Zheng Mian has long been out of touch with fundamentals and is greatly affected by the international situation, bulk commodities and even the trend of ice futures. Therefore, in the short term, we should pay close attention to the global market and the international situation, and make timely judgments and adjustments.