Cotton prices soar; reasons behind the price increase

Recently, domestic cotton futures prices have been significantly on the rise. From early November last year to now, the main Zheng cotton contract has increased by nearly 1100 yuan per ton, with an increase of over 7%. In early January this year, prices briefly surged to 15,000 yuan per ton, reaching a new high in nearly a year and a half. With futures rising, spot prices have also risen, with the average national spot price of cotton increasing by around 1000 yuan per ton, an increase of nearly 7%. Industry insiders believe that this round of cotton futures rise is the result of multiple factors such as supply and demand, costs, and market expectations. At the same time, the expectation of a reduction in planting area for the next year and other factors have also strengthened market sentiment towards a bullish outlook for the future.