China And The US Have Stepped Up Their Trade In A Phased Way.

The domestic market: on Tuesday, the main contract of Zheng cotton 1909 contracted, and the price of the market recovered slightly; the highest price was 14110, the lowest was 13800, closing at 13970, compared with the previous trading day -0.53%; the turnover was 416024, the position 479892, +2762, the base 321, +226; CF9-1 monthly price difference 605, +30.


Outward trend: the ICE futures of cotton futures on the Intercontinental Exchange () picked up slightly, so the former US and China agreed to restart economic and trade consultations, but the dollar strengthened to restrain the price rise. By the end of the closing session, ICE's most active December cotton rose 0.60 cents, at a price of 67.18 cents per pound.


News: 1, the US Department of agriculture (USDA) announced on Friday that all cotton planting areas in the United States were expected to be 13 million 720 thousand acres in 2019, after a market estimate of 13 million 819 thousand acres. 2. In July 1st, the sale of the cotton reserves was 10986.9903 tons, and the actual turnover was 10986.9903 tons, with a turnover rate of 100%. The average transaction price was 13426 yuan / ton, up 433 yuan / ton compared with the previous trading day, and the price of 3128 yuan was 14640 yuan / ton, up 461 yuan / ton compared with the previous day.


On the spot side: the cotton index 3128B price is 14291, up 102 from the previous day's spot price; the cotton yarn price index C32S price is 21800, up 10 from the previous day's spot price. (unit: yuan / ton)


Warehouse Receipt Inventory: 16334 warehouse receipts, -114, warehouse receipt inventory continues to flow out.


The main position: the main contract on the day the top 20 long positions 245351 hands, -3703; short positions for 290879 hands, +4106; clear positions occupy the advantage.


Summary of Views: cotton futures on the ICE were generally stable on Friday, and the previously reported planting area report was in line with expectations. Domestic cotton Market: Cotton social inventory is still higher than the same period last year, and new cotton sales progress is slow, the market supply is still abundant. But in the near future, the starting rate of downstream yarn and grey cloth has slowed down, and the yarn and grey fabric inventory has declined. The rising of substitute materials is conducive to the digestion of yarn stock. The market demand is expected to be improved to a certain extent. At the G20 summit, China and the United States shook hands on peace talks. The United States said it would no longer impose new tariffs on the remaining 300 billion dollars of Chinese goods, which would help the cotton market. However, the US Commodity tariff has not been abolished, and it will continue to affect about 17% exports of textiles and clothing to the United States. Technically, the CF1909 contract short and average line system is in a horizontal upward trend. It is estimated that Zheng cotton short term is expected to test the pressure of 14100 yuan / ton. On the operation, it is recommended that there should be more light storage tests near 13935 yuan / ton, 13890 yuan / ton for stop loss, and 14100 yuan / ton for profit.