Cotton prices continue to rise, and gauze companies are underemployed

On the 21st, cotton prices continued to maintain a rising trend. The purchase price of third-grade lint of textile enterprises was 19,800 yuan/ton, and there was little transaction volume, but the purchase volume of imported cotton increased. The terminal garment processing enterprises generally reflected that according to the normal years, the current orders in the hands can be completed in May-June, but the foreign trade orders for garments are obviously insufficient, resulting in a persistently light atmosphere in the domestic gauze market, and the sales volume is lower than expected. The lack of start-up of downstream gauze companies is more common, and the attitudes of medium and small-sized gauze manufacturers in lowering quotation and accelerating shipments have been strengthened.

Zhengmian 1209 opened lower and opened quickly for a lower price, reaching as low as 21,470. Afterwards, the price of the positions increased. This round of cotton fell sharply, mainly because of excessive speculation, and the long-term contract gains were too large and there was a correction. As prices fall and arbitrage space shrinks, there is limited room for cotton to fall, but the overall downward trend has not yet been reversed. It is recommended to set up the profit on the 5th line. If it does not break the 5th line, the short position will continue to hold.