Down Trend Of Cotton Seed Market

 

It is expected that the weak operation trend of cotton downstream will not change in the future, and the pressure will gradually pass to the upstream. However, the situation of seed cotton market during the National Day holiday is still complex.

As a primary agricultural product harvested by cotton farmers, seed cotton is also the processing raw material of lint in disk trading. The peak selling period is from October to November every year. The price game of seed cotton in this period can basically determine the whole annual lint cost center. From this year's seed cotton market situation, price differences are obvious.

In the previous period, there was consensus on the following aspects in the market:

The first is to expand cotton planting and increase production in Xinjiang;

Second, Xinjiang's ginning capacity will be reduced, and it will be purchased cautiously this year;

Third, the contradiction between the supply and demand of seed cotton has been greatly eased, and it is difficult for the seed cotton market to rush for harvest.

As such consensus is expected to change and be questioned during the National Day holiday, cotton futures prices showed a wave of higher prices in the last trading day at the end of September.

However, in the current global macroeconomic environment is poor, while the future textile consumption is still bearish, the cost support theory of cotton is still untenable, and the fluctuation of seed cotton market is difficult to shake the downward trend of cotton price oscillation.