The China Cotton Association issued a report on the progress of picking and delivery. As of the end of October, the country’s picking progress was 91.82%, 2.94 percentage points faster than the same period last year; the delivery progress was 85.42%, 8.30 percentage points faster than the same period last year; the average transaction price was 6.44 yuan/kg. A year-on-year increase of 27.52%.

　　 At present, seed cotton picking is coming to an end, and the average price of seed cotton is basically locked. According to the above statistics, the average price of seed cotton this year is significantly higher than last year, leading to a significant increase in the cost of lint and strong support for the disk. From September to November 2019, Zheng Cotton's fluctuation range was maintained at 1,2000-13200 yuan/ton. This year's fluctuation range was significantly higher, mainly due to the support of the cost and the short-term benefits of the downstream. When the market risk factors have not yet been fully released , Will cotton prices have upward momentum in the future?

　　 Market analysts believe that cotton remains range-bound, but the long risk is significantly less than the short risk. Now the cotton price fluctuates at a low level near the cost line. Even if there are bad news and the downside is limited, the risk can be well controlled. On the contrary, if the low position is short, once the epidemic is under control and the market risk factors are released, there will be more room for cotton prices to rise.

　　 The person also said that as the time for the vaccine to come out is approaching, the economies of countries severely affected by the epidemic will gradually recover, and economic and trade exchanges between countries will become more frequent, which will help boost market consumption. There is a high probability that Zheng Mian will not perform well this year, because under the background of sufficient supply and declining demand, the rise is weak. There should be a good performance next year, especially under the influence of multiple factors such as consumption and weather. At this stage, for enterprises, cotton prices can fall down to purchase resources at a price, and prices rise to stay on the sidelines, so as to ensure that the cost of raw materials remains low.