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China US Relations Will Dominate Cotton Price Trend In The Future

2020/8/22 21:23:00 0

At a press conference held by the Ministry of Commerce on August 19, the reporter asked: "according to relevant reports, the United States and China plan to reschedule the trade talks postponed at the end of last week. The purpose of the talks is to assess the progress of the first phase of the trade agreement six months after the signing of the agreement. Although the date of this meeting has not been set, it will be held soon. " Gao Feng, a spokesman for the Ministry of Commerce, said the two sides had agreed to hold a call in the near future. Undoubtedly, the news that China and the United States have begun to contact has boosted the market again, and the relevant commodity prices have rebounded.

China US relations will dominate cotton price trend in the future

After the cancellation of economic and trade talks between China and the United States last weekend, domestic and foreign cotton prices quickly responded to the decline. Although the downward space is limited, it at least shows that the market is extremely sensitive to the news. What is the main contradiction that affects cotton price now, this is everybody is very concerned about.

Since the cracks appeared in Sino US economic and trade relations, the volume of trade between the two countries has been declining. According to the latest data, in the first five months of 2020, ASEAN was China's largest trading partner. The total trade value between China and ASEAN was 1.7 trillion yuan, an increase of 4.2%, accounting for 14.7% of China's total foreign trade. The EU is China's second largest trading partner, with a total trade value of 1.61 trillion yuan, down 4.4%, accounting for 13.9% of China's total foreign trade. The United States is China's third largest trading partner. The total value of Sino US trade was 1.29 trillion yuan, down 9.8%, accounting for 11.1% of China's total foreign trade. The direct impact of problems in Sino US economic and trade relations is the decline of trade volume and cotton price (including other commodities).

The influence of epidemic situation on cotton market is gradually declining

Recently, some cotton experts believe that Sino US relations will become the main contradiction affecting the trend of cotton prices in the future. After such a long time of digestion and response to the epidemic situation, the influence will inevitably decline. With the gradual recovery of the economy and the progress of vaccines in the later stage, the strength will only become weaker and weaker. Therefore, the focus of attention will gradually shift.

Of course, there will always be small episodes in the market. The development of the epidemic situation in Xinjiang affects the nerves of the whole cotton market. Under the influence of the recent epidemic situation in Xinjiang, Zheng cotton showed the characteristics of easy to rise and difficult to fall, especially in the early stage of the outbreak, Xinjiang cotton delivery encountered resistance, short-term Xinjiang cotton supply problems, giving the market the opportunity to speculate. It is widely predicted that the current cotton production in Xinjiang is in a critical period. If the epidemic continues, it will have a negative impact on cotton field management, picking, selling and processing. However, the good news is that the confirmed cases in Xinjiang have been cleared for more than days, and the time to unseal is getting closer and closer, so the cotton delivery and production will not be greatly affected. After all, there are sufficient means and methods in domestic prevention and control experience and measures, coupled with the rapid progress of vaccine research and clinical trials, leaving few days for the epidemic situation.