Zheng Cotton Trend Is Hard To Say Optimistic

After a brief "May 1" holiday, the United States cotton fell to 53 cents / pound nearby, zhengmian 09 main contract is also open to the air, and under the premise of the global epidemic has not yet been curbed, the resumption of terminal consumption still takes a long time, cotton price trend is hard to say optimistic.

When the market was most pessimistic, cotton prices briefly fell below the threshold of 10000 yuan, and then rose again, indicating strong support at the bottom. In the previous article, I have analyzed that cotton prices will be oscillating for a long period of time, with limited space for rise and fall. Today's low opening is not necessarily a bad thing. Tomorrow's high opening is not necessarily a good thing.

In May, the traditional sales season of textile enterprises was low, and the purchasing intention of enterprises was relatively low. Zheng cotton history K line also proved that the number of prices fell significantly more than the rise in May. Therefore, in my view, this period of decline is normal, after all, raw material sales are in the off-season, unless the weather disaster occurs, otherwise the price is very difficult to get up. For example, in May 2018, many cotton fields in the south of Xinjiang were attacked by bad weather, and cotton seedlings were severely damaged. The funds increased the price to a high level of 19000 yuan / ton, but after all, it was difficult to support high prices for short time speculation. Finally, cotton prices began a long bear market in June for three years.

The current cotton market is unpredictable. Yesterday it was "green oil". Today it is possible to be "red and bright". Especially when crude oil and other commodities are in a state of confusion, the difficulty of judging cotton prices is increasing. Sometimes keeping the strength away from the market is the best strategy. Just as the cotton price is now, it is difficult for speculators to be short and short. In such a case, it may be the best strategy for retail investors to stop and wait.