According to the price monitoring of SunSirs, on November 12, 2019, the average price of 3128B cotton lint in the domestic spot market was 13,083RMB/t, 0.46% higher than that of last Tuesday (November 5). The closing price of CF2001 was 12,810 RMB/t. In the past week, the settlement price of CFM has been reduced by nearly 300RMB/t.
The willingness of enterprises to purchase increased significantly, and the willingness to increase the cotton blending ratio increased month on month. According to the survey of the national cotton market monitoring system, as of the beginning of November, it was estimated that the inventory of the national cotton industry was about 609,000 tons, an increase of 2.3% month on month, a decrease of 24.5% year on year. As the production and sales of yarn and cloth are picking up, manufacturers are particularly keen on high-quality cotton lint. As the output and quality of new cotton are affected by weather, the spot price was firm. According to the news, Trump said that although the negotiation went smoothly, he would not cancel any tariffs imposed on China, which conflicts with the signing conditions proposed by China. The market is very worried about this, believing that the signing of the agreement is more difficult and Zhengzhou cotton’s performance has been weak.
Analysts of SunSirs believe that the market pays attention to the signing of Sino US trade agreement, international cotton prices may fall, and domestic spot goods may fall back.