In mid November, the cotton market reappeared "fatigue". The spot market showed a "down" market for 5 consecutive trading days. In November 20th, the spot price of standard grade cotton hit a recent low, dropping below 14700 yuan per ton.

Some market participants believe that cotton prices will continue to be in a downward trend after the short term release of textile demand.

China Federation of textile industries Yang Shibin, assistant to the president, thinks that the cotton price is close to the real price of cotton, but it still has a long distance. Cotton price may drop to below 14000 yuan per ton, but it will form a support at 13000 yuan -14000 yuan per ton interval.

Futures market, early November 20th, CF501 contract fell again breaking 13000 yuan per tonne pass. CF505 also created a new low of 12610 yuan per ton since the listing of the contract.

international Cotton market Cotlook A continued low, at 66 cents / pound, the lowest price in 4 years. The price of the sliding quasi tax quota is about 13000 yuan per ton, and the domestic and foreign cotton price narrowed to 2000 yuan per ton.

Considering the market demand, China textile industry Entering the medium growth stage, the overall recovery is slow. With the growth of cotton yarn imports and the trend of overseas capacity spanfer of textile enterprises, domestic demand for cotton has dropped from the annual demand of 12 million tons to the annual consumption of 8 million tons in recent two years.

At the same time, China's cotton stocks are high, exceeding 10 million tons. And China's cotton policy is becoming clearer. We must ensure a certain proportion of China's new cotton supply. For example, the Chinese government has recently introduced related subsidy policies to cotton producing areas outside Xinjiang, which will help to slow down the planting area of Xinjiang's cotton producing areas. Gao Fang, executive vice president of China Cotton Association, said that the supply of cotton imports accounted for only 1/3 of the cotton market per season.

Both ends of supply and demand show reality. In the medium and short term, China's cotton market may enter the era of "low cotton price" for a period of time.