cotton prices are mainly dominated by macro environment from Nov 2022

The main positive factors to cotton prices later are: 1. The Chinese macro policy may continue to give positive stimulus to cotton market in the first quarter, giving loose monetary policy; 2. With historical low cotton/grain price ratio, 2023/24 cotton planting areas may reduce; 3. Spinners still have certain demand for cotton. With coming new cotton planting period, cotton prices may be hard to slip sharply. The uncertain factor at present is mainly the end-user consumption. If it is good later, replenishment will continue, but if it is poor, supply pressure will increase. The market still waits for a more clear direction from new cotton planting, end-user consumption and macro news.