freebingoforfunnomoney| CITIC Construction Investment Futures Analysis: Cotton prices are highly resilient, and domestic and foreign cotton price differences and substitution pressures coexist

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Differences between cotton futures and spot pricesfreebingoforfunnomoney, the spot market has shown "resilience", but the widening spread of domestic and foreign cotton prices and the pressure of yarn price differences may curb cotton prices.

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Cotton prices in the current marketfreebingoforfunnomoneya comparison

The current basis for the cotton period showed strong resilience, and the spot market showed good resilience, in sharp contrast to the futures market. The significant widening of the gap between domestic and foreign cotton prices suggests that if the sliding tax quota is increased, domestic cotton prices may face greater pressure. In addition, the price difference between cotton-polyester and cotton-viscose is at historically high levels, showing the strong motivation of cotton substitutes. However, after years of market differentiation, cotton and chemical fiber have undergone significant changes in application scenarios, which limits the space for further substitution of cotton. The performance of the spread of yarn prices is more pessimistic, which puts pressure on the profit margins of the textile mill, and the production capacity of the textile mill may face elimination. As a result, the current cotton market seems to be in a tug-of-war between resilience and negative expectations.