After the soaring cotton price, speculators hit hard

On June 3, China's cotton price index was still falling. Some analysts said that due to the lack of domestic demand and the impact of a decline in exports, it is expected that the decline in cotton prices will continue and may continue into the month of **.

According to the latest data from the official website of the China Cotton Association, since the beginning of this year, the price of cotton has changed dramatically from last year's trend and it has continued to decline. According to the latest monitoring data, the Chinese cotton price index is still falling on June 3. Analysts pointed out yesterday that the ups and downs of cotton prices since last year have hit a large number of cotton traders.

Ma Wenfeng, an analyst at Beijing Oriental AIG Agricultural Consulting Co., Ltd., said that since the beginning of this year, the cotton price has been falling. The current price has dropped by 20% compared with the high point, but it is still at a high level.

It is understood that since the second half of last year, the price of cotton has risen steadily. In October and November of last year, the price of domestic 328-grade cotton (standard cotton) hit record highs one after another. It rose by 40% from the previous year last year. At that time, the rising cotton prices directly affected the clothing market in the downstream. At the end of last year, a survey by reporters showed that there were generally two to three percent gains in new clothing in shopping malls.

Ma Wenfeng said that the continued decline in domestic cotton prices has hit hard against cotton traders.

The latest analysis published by the website of the China Cotton Association stated that most cotton traders currently have a lot of cotton stocks in their hands, and there are not only a few hundred tons or thousands of tons of companies. With the current cotton prices stabilizing, the inventory of textile companies bottomed out, cotton companies actively shipped, and the volume of both parties increased. In addition, the current downstream industry is more pessimistic, and it is expected that the arrival of orders will improve in the second half of the year.

China Reserve Cotton Management Corporation recently wrote on the website of the SASAC that although the recent weather factors provided some support for the cotton futures market, it is more likely that domestic cotton prices will run weakly before the textile production and sales situation has clearly recovered.

The China Reserve Cotton pointed out that the exchange rate of *** against the US dollar hit a record high, which caused the export environment of textile companies to deteriorate. On the other hand, domestic yarn prices have not yet escaped the drop channel.

For the trend of cotton, Ma Wenfeng said that due to the lack of domestic demand and the impact of export volume decline, it is expected that the decline in cotton prices will continue and may continue into the month of **.