Domestic cotton market prices fell slightly

During the week, the main cotton-producing areas in the Mainland were still plagued by rainy weather, and the light was slightly insufficient. In addition, the humidity of cotton fields in some areas was relatively high, and the incidence of diseases and insect pests increased, which had a certain impact on the growth of new cotton; In the rainy season, the overall growth of the new cotton is gratifying, and the high yield is expected to increase. The opening price may be lower than RMB 6/kg. The ginning mills were almost completely shut down and waiting for new cotton picking. The stocks of cottonseeds kept declining and the manufacturers had a strong mindset for holding prices.

**In the market, on August 5th, ICE** continued its search in the bearish atmosphere. The market expects the US cotton yield to increase. The December contract fell shortly after the correction and closed for the third consecutive trading day. low.

Traders will exercise caution before the USDA monthly report next Wednesday, and there will be no significant change in cotton prices in the short term. Recently, Zheng cotton continues to be weak, and the main contract is below the moving average system. There is still a possibility that the main contract may fall. However, it is currently at a low price, so it is not suitable to chase the air blindly. The risk factor is increased and careful operation is appropriate.

During the week, the textile industry was still in a stable state. Most of the normal start-up companies maintained a balance between production and sales. Orders were mainly from old customers and scattered orders, and the funds were still abundant. At present, non-cotton fiber consumption has continued to squeeze into the cotton yarn market, and cotton yarn prices have decreased. The profit is meager and it is difficult to see short-term business recovery. In addition, the supply of yarn imported from the port was sufficient, the product quality defects were increasing, the market demand was poor, and the sales pressure of traders increased.