Jinsui Futures: 0527 Cotton Morning Review

Cotton (16840,65.00,0.39%) (Fundamentals): spot market, domestic 328 spot price index continued to rise slightly, the acceleration is accelerating.

The government has issued 800 thousand tons of import quotas, but failed to curb price increases.

To this end, the government has begun to consider new import quotas and sell cotton reserves, which will play a short-term inhibitory role.

In recent years, the NDRC has paid special attention to prices and paid attention to the harm of rising cotton prices, which has affected cotton enterprises' hoarding enthusiasm to a certain extent.

The downstream market, in recent years, the price of pure cotton yarn is strong, some products have risen, other yarn market is stable, sales volume is general; Shandong Changyi cotton yarn products prices have risen, sales situation is better; Shengze market, all cotton yarn prices rise, polyester cotton yarn individual varieties price rise, individual cotton yarn individual species price downward inertia.

Most textile companies have already raised the price of cotton yarn. Cotton prices have stabilized because of the decline in cotton prices.

(technical side): zhengmian 1101 contract rebounded yesterday, with a slight increase in positions on the position. The upward pressure on the market price was relatively large. Over 17000 of the contract prices had strong pressure on the futures price. The spot market continued to strongly support the price. But the planting area this year will be a new hot spot of speculation. The latter will pay attention to the 17000 front line pressure.

(operation suggestion): in the short term, the price will start to oscillate around the 17000 line and wait for a while.