China cotton network special news: In the week (December 11-15), the most important news in the market is that the Federal Reserve announced that it will continue to suspend interest rate hikes, because the market has reflected it in advance, after the news was announced, the commodity market did not continue to rise as expected, but it is good to turn down.

Zheng cotton CF2401 contract is about a month away from the delivery time, the price of cotton is about to return, and the early Zheng cotton fell too much, traders or cotton ginning enterprises can not normally hedge, resulting in Zheng cotton appeared a small rebound, of which the main contract bounced up to 15,450 yuan/ton, then in the early morning of Thursday after the Federal Reserve announced the interest rate news, The overall decline in commodities, Zheng cotton also followed the lower. The market is temporarily in a vacuum period, the fundamentals of cotton remain stable, and Zheng cotton continues to maintain a range of oscillations.

That week, the national cotton market monitoring system announced the latest purchase and sales data, as of December 14, the country’s total processing cotton 4.517 million tons, an increase of 843,000 tons; The total sales of lint 633,000 tons, a decrease of 122,000 tons year-on-year. The new cotton processing progress has reached about 80%, and the market volume continues to increase, under the background of increasing supply and less than expected consumption, the pressure on the cotton market is still heavy. At present, the spot price of cotton in Xinjiang warehouses has been lower than 16,000 yuan/ton, of which southern Xinjiang enterprises can basically reach break-even, and northern Xinjiang enterprises have a large loss margin and great operating pressure.

Downstream in the off-season of consumption, Guangdong, Jiangsu and Zhejiang, Shandong and other coastal areas of textile garment enterprises on cotton yarn consumption demand decline, lack of long single, large single support, coupled with cotton prices have not stabilized, the market is cold, enterprises destocking pressure. It is reported that some traders can not bear the market pressure, worry about the future market yarn prices continue to fall, has begun to downgrade processing, short-term impact on the yarn market, market rumors traders and other customers accumulated cotton yarn up to more than one million tons, yarn market pressure is too heavy, yarn to change the current weak operation situation needs time for space.