Sinopec News: Multiple bullish factors stimulate, cotton prices hit new highs

Drought in the main cotton-growing areas in the United States still persists, which continues to drive overseas cotton prices higher. In addition, as Xinjiang’s cotton acreage is in the process of being reduced—although the magnitude of the reduction has not yet been determined—there is still a situation in which downstream demand continues to recover and improve after the Spring Festival. With domestic and international prices moving in tandem, domestic cotton prices have risen for 7 consecutive days. In the short term, cotton prices may still have some room to push higher, but investors should be alert for the potential appearance of reserve-release policies. In the medium- to long-term cycle, cotton is in a continuous process of tightening supply and demand, and there is a possibility that prices will continue to experience a pattern of fluctuating upward. (Zhuochuang Information)