How To Treat Zheng Cotton Plummeting Sharply By Reducing The Selling Price Of Oil?

On the 9 day, Zheng cotton futures opened early in the morning, and the CF2005 contract in the main market hit 12155 yuan / ton per day. The market is pessimistic, and the industry chain is facing new challenges.

It should be said that the collapse was dragged down by the international market. Last Friday (March 6th) Saudi Arabia (OPEC) and Russia's oil production conference collapsed, so Saudi Arabia sharply reduced oil sales prices, global oil prices fell sharply, the highest since 1991. This led to a global stock market crash and financial markets to chaos.

All of a sudden, we were caught unprepared. However, tracing and tracing is not difficult to find some clues. This oil price war has its inevitability.

1, the global epidemic has caused a huge impact on the crude oil and commodity markets. Oil prices had the biggest weekly decline since the financial crisis last week. Russia and OPEC can sit at the negotiating table and negotiate on the issue of crude oil production, which represents a pessimistic view of the future price of oil in the two major oil exporting countries.

2, Russia, OPEC and other crude oil producers and exporters have to make a major choice: they should sign a reduction agreement to ensure a firm price, or continue to maintain production capacity, so that everyone can fight a price war. Finally, the price war was fought, and the consequence was the collapse of crude oil.

In short, no matter what way the crude oil exporting countries choose, the crisis brought about by economic downfall has already been able to infect every country's interests and great interests, and anything can happen. If only a price war and economic backwardness, we should feel lucky.

So what is the problem of Zheng cotton's hitting the limit board from the global stock market crash and financial turmoil caused by the crude oil price war?

We should understand from three aspects:

First, Zheng Mian was already a soldier, but when there was wind and grass, it was scattered or defeated. This reminds me of the market speculation of "locusts" in February 17th of this year. Zheng cotton's trading limit is only a flash in the pan. That is, "news of the locust disaster in India has basically come to an end".

Zheng cotton becomes sensitive and vulnerable, and will fly up and down with all kinds of news. Therefore, there is no need for the market to panic because of this collapse.

Two, Zheng cotton or run at the bottom for some time. From the domestic perspective, the epidemic situation has been effectively controlled, enterprises are also resuming work and production again, and the capacity of the textile industry has also returned to 50%-60%, basically unchanged from the Spring Festival. However, the consumption of downstream fabrics and clothing has not been released. Consumers in urban and rural areas are still trapped in their homes and schools are not yet open, indicating that the epidemic is not yet over.

In addition, the global epidemic is spreading rapidly, and China's foreign trade has also dropped to freezing point. Therefore, cotton's fundamentals are not good enough. Zheng cotton wants to rise temporarily and can't find any better theme for the time being.

Three, wide oscillation or the main direction. Under the epidemic, the oil price war between Russia and OPEC has been a prelude to various economic frictions and downturns in the first half of this year. We should be prepared for more and more storms.

As a market person, it may be able to find a fighter in the wide swing of Zheng cotton, find the right way of operation, and get a beautiful life in the miserable market. Although it is tiger's skin and fire, it is not impossible to get a better return in risk if the courage is big enough and the method is good enough.

To sum up, in the face of such a severe global epidemic, we look at the market after the market is not bad, but recognize the current situation, make scientific judgments, reduce losses, and finally get through the winter to usher in the mountain flowers.