Shenwan Hongyuan Futures: Zheng Cotton main contract price hits a new high, expecting cotton supply to be tight this year

Zheng Cotton main contract overnight hit a new high again, with the price center moving upward.
In the medium to long term, the expectation of reduced production in the new year provides some support to the market, with increased consumption, combined with last year’s inventory carryover at a low level, it is expected that supply will be relatively tight this year.
Meanwhile, considering that policy expectations for planting area are being adjusted, attention is on the state reserves release situation.
In the short term, market sentiment is high domestically, with valuation recovery in foreign markets still driving the trend, domestic spinning companies and weaving mills are destocking raw materials, combined with positive market sentiment, Zheng Cotton’s trend is relatively strong, with attention to resistance levels above.
(Shenwan Hongyuan Futures)