Under the rumors of cotton commercial inventory shortage

Under the rumors of cotton commercial inventory shortage, the expectation of a sharp reduction in cotton production in the 2023/24 crop year, and high spirits of harvest rush. Coupled with the participation of various funds, the sentiment in China cotton market has been high recently, and prices have risen sharply. On Jun 1, ZCE cotton futures almost hit limit up, and it kept rising recently, from 15,500yuan/mt at the end of May to the current 17,000yuan/mt. During the same period, the spot price of cotton 3128 jumped above 17,100yuan/mt from 15,900yuan/mt, gaining ground by 1,200-1,500yuan/mt in just a few days. On the other hand, cotton linter whose previous trend was highly similar to that of cotton has seen more divergences recently, and prices seem to stop rising.