On January 15, Zheng 1505, the main force of the cotton contract, went up slightly, rising by RMB 60/ton from the previous day. The trading volume changed little, and the open interest declined slightly. The outer disk US cotton fell to a seven-and-a-half year low on Wednesday, and the March contract fell 1.17 cents to 58.98 yuan/ton. The strong trend in the domestic market and the formation of the external disk are more obvious differences.

At present, the bullish factors of the cotton ** mainly come from two expectations: First, the sown area of ​​the US cotton and Chinese cotton has drastically decreased; second, the government will support the cotton spinning enterprises. In this regard, a cotton industry personage pointed out that in 2015, due to the subsidy effect and limited alternative crops, Xinjiang’s cotton planting area fell by at most 5%. The decrease in US cotton planting depends on the suitability of cultivated land and the economy of soybeans and corn in the future. Benefits: The continuous decline in the prices of soybeans and corn may not lead to obvious alternative cropping. “The most likely crops to come out of production are cotton in the Mainland. However, due to the difficulty in replanting some of the mainland cotton production areas due to drought, the overall cotton planting area in the interior of the area is reduced to around 50%.”

Some analysts pointed out that although domestic cotton prices experienced a big drop in 2014, the price gap between cotton and international markets has narrowed considerably, but the price advantage of imported cotton is still in place, and its pressure on domestic cotton prices is not yet available. Will eliminate. "The linkage between cotton and cotton inside and outside the plate may be further strengthened."