Recently, with the instability of global trade and economic uncertainty, cotton futures prices in the market have been in an unstable state. As for the decline in the futures price of Xinye spinning cotton, it can be mainly attributed to two reasons.

The first is the impact of macroeconomic factors on cotton demand. Recently, the global economic growth is weak, and the international trade friction is intensified, which has a negative impact on market demand. In addition, the spread of novel coronavirus epidemic around the world makes the market more pessimistic about the future economic development, which drags down the demand and leads to the decline of cotton futures prices.

Secondly, the relationship between supply and demand has changed in the short term. At present, the high global cotton inventory, coupled with the increase in domestic supply and the corresponding decrease in demand, has led to an imbalance between cotton supply and demand. Moreover, during the domestic epidemic, enterprises were greatly restricted from returning to work, which led to weak demand for cotton. These factors led to the decline of cotton futures prices.

Generally speaking, the uncertainty of the global economy, the impact of the epidemic and the short-term imbalance between supply and demand are the main reasons for the decline in the futures prices of Xinye textile and cotton. For futures market participants, it is necessary to pay close attention to market changes, respond flexibly and avoid risks.