Because domestic cotton production is far below demand, domestic cotton supply and demand have an important impact on domestic cotton prices.

2. Exchange rate factor

The appreciation of RMB has reduced the import cost of American cotton and stimulated the import of American cotton to some extent. Because of the long-term existence of exchange rate fluctuation factors, it will have a far-reaching impact on domestic cotton prices.

3. Trade policy

In recent years, the textile trade friction between China, the United States and Europe has intensified, which has seriously affected the production and operation of the domestic textile industry. This factor will exist for a long time in a certain period of time.