Cotton Vice Market Worries Slowdown, Price Continuing Uptrend

Recently, global stock market prices have risen, crude oil prices have risen, US beans planting area has decreased, and the market is worried that South American soybean production will be reduced, which will bring support to the cotton secondary market. On March 27th, the price of most cotton by-products in China continued to rise steadily.

The purchase price of domestic cottonseed was mostly stable, with a slight increase in local prices. Recently, the price of cottonseed oil and cottonseed meal rose steadily. The enthusiasm of the oil plant to enter the market increased. With the supply of domestic seed cotton in the later stage, the output of cottonseeds was limited. The cotton planters reluctantly sold their goods and they supported the price of cottonseed.

The price of cotton oil continues to rise. Increased soybean and soybean oil prices in the external market boosted domestic soybean oil and palm oil in a strong operating pattern, which brought support to the cotton oil market. Coupled with the loss of cottonseed crushing, the oil refinery will increase its willingness to use cotton oil and short-term cotton oil. Prices are expected to keep rising.

The price of cottonseed meal rose steadily. Higher prices of US soybeans led to an increase in spot prices of domestic soybean meal, and cotton-cotton prices dominated the market. Coupled with the gradual increase in shutdown rate of oil plants and the decrease in supply of cottonseed meal, it is expected that the market outlook will continue to rise.

The sales of cotton linters were weak and the prices remained stable. The short-term staple fiber market performance is not good. The willingness of chemical fiber factories and refined cotton mills to purchase into the market is weak, and the prices of compressed cotton linters are steadily falling.

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