Zheng Cotton Market Rebound Trend, But Cotton City Winter Is Still "Bottom" Is Still Early.

In just a week, Zheng cotton K line is actually "seven Lian Hong" rebound trend, which is not easy under the background of cotton city winter, although the operation process is full of tangled, but the result is indeed a pleasant surprise.

At present, the purchase and sale activities of cotton market have dropped to freezing point, the situation of large-scale stocking has not appeared, and the downstream textile enterprises basically purchase on demand, without the bustling bustle of past days, why is Zheng cotton quietly rising?

I think it may be affected by the following events:

The first is to reduce the message.

On the evening of January 4th, the Central Bank of China again made a big move, announcing that it was once again lowered in January 2019 and lowered the deposit reserve ratio of financial institutions by 1 percentage points.

In 2018, the central bank carried out the four time reduction, which is the first comprehensive reduction in 2019.

It is understood that the net release of long-term funds of about 800 billion yuan, which ease the pressure on private enterprises financing, hedge the property market cooling, and boost confidence in the stock market has a great role, of course, the market is abundant, and also has much impact on commodities.

At the end of 2018, international oil prices finally brought hope to investors.

The US crude oil 05 contract continued to rebound from low 43.46 US dollars / barrel to 49 US dollars / barrel.

In this wave of rising, black and chemical departments were driven by a large increase, cotton is no exception, but also to a certain extent.

After all, the rising of chemical fiber has a lot of influence on cotton.

Of course, in the long run, crude oil may keep up with the trend of upward trend. In the medium and short term, crude oil may rebound after a period of rebound.

In January 7th, trade between China and the United States has resumed negotiations. Information released by domestic and foreign media and agencies shows that the atmosphere of the talks is harmonious, and both sides are looking forward to cooperation in the future. Of course, there may be other variables in the end.

From the US cotton ICE05 contract performance, the recent 3 consecutive rise also indicates that Sino US trade relations are developing well.

All of these are recent positive performance. Of course, warehouse receipts and orders still exert great pressure on the spot market.

As of January 4th, the number of warehouse warehouse receipts was 16843 (warehouse receipts + effective forecasts). According to 40 tons per warehouse receipt, the total amount was 673720 tons.

In addition, the national cotton industry and Commerce inventory also exceeded 5 million tons, a record high.

In the face of many unfavorable situations such as ample supply of market resources, insurance companies eyeing, downstream market orders decreasing and cotton yarn sales sluggish, Zheng cotton still faces great difficulties in order to complete the magnificent turn.