Cotton Futures Are Not Expected To Rise Or Fall.

Zhengzhou cotton futures contract 1101 closed on Monday (June 21st) to 16595 yuan / ton, down 0.54%.

The government is ready to throw the reserve, which may be distributed in two batches, with a total quantity of 300 thousand tons.

However, pressure is being released, easing the expectations of macroeconomic regulation and recovery, so that cotton futures to recover some of the decline.

In the near future, the rain in the northern part of Xinjiang is not conducive to the growth of cotton. The southern Xinjiang is good for cotton growth. The rainfall area in the the Yellow River basin is narrow, which is conducive to cotton growth. The rainfall range in the Yangtze River Basin is narrow, which is conducive to cotton growth.

Cotton seedling growth in China is significantly lagging behind. In previous years, the harvest period is expected to be delayed for half a month.

In addition, according to the new area survey report, the cotton planting area decreased by 0.7% again in 2010.

Therefore, the total domestic output is expected to be flat to 5% over the 09 years.

In the United States, there is less rainfall in the western region, which is conducive to the growth of cotton. In central and southern parts of the country, rainfall generally decreases, and the range of flood is narrowed, which is conducive to cotton growth.

Cotton production is expected to increase by 35% in the United States, and the growth rate will be on a par with the average in previous years.

Spot market, 21, the domestic 328 spot price index continued to rise slightly.

Due to the continuous rise of cotton spot, the time window for throwing and storing is approaching, the central storage cotton has hinted that the time may be the end of this month, the number of the first batch is about 300 thousand tons.

However, concerns about a marked slowdown in global economic growth have dropped slightly, and trade is expected to increase demand for cotton, most of which are reluctant to sell.

In the first 5 months of 2010, the total import of cotton reached 1 million 370 thousand tons, which was far beyond the expected growth rate, but also failed to ease domestic supply pressure.

Tight supply and low inventory at home and abroad provide a driving force.

Spot support for the futures market is very strong.

In the downstream market, the price of Qian Qing yarn has kept stable and sales volume is normal in recent years. The price of cotton yarn products in Changyi, Shandong has increased and the situation is better. The cotton yarn trade volume of Changzhou Hutang cotton yarn market is still moderate, the price has slipped slightly, the price of all cotton yarn and polyester cotton yarn has steadily increased, the price of cotton yarn and yarn in Ningbo East China has been better, the core price of all cotton yarn varieties has shifted upward, the polyester cotton yarn market has steadily increased, the total cotton yarn in Shengze market has been raised as a whole, the price of polyester cotton yarn has also risen, and the price center of individual cotton yarn has shifted slightly downward.

Cotton prices are at a high level, and continue to maintain the upward trend, and the outlook is optimistic.

The low price of raw materials and the high price of raw materials have promoted the price of cotton yarn, and good export demand has also provided strong support for the cotton yarn market.

In May, the export volume of Chinese clothing and accessories increased by more than 27% over the same period.

The sale of cotton yarn will drive cotton prices up.

Overall, fears of a two dip in the global economy seem to have eased again, and the market is more inclined to push inflation on commodity prices before meeting tight economic data.

This is good for commodity prices.

Moreover, the Chinese government may relax macroeconomic regulation and control so as to stabilize the current economic situation and avoid falling into the lead stage.

Especially in the real estate sector, the government may suspend more pressure.

Most commodity futures are stimulated by this incentive.

For cotton, the strong sales of cotton yarn provided a strong support, so that the first 5 months of cotton imports far exceeded expectations, which also failed to ease domestic cotton supply, spot prices continued to rise.

However, the government is ready to throw up stock and restrain the price rising. It may be put into two batches, with a total quantity of 300 thousand tons.

This also brings some worries, because the domestic cotton sowing area has slightly declined, the yield prospects are not optimistic, the government may lack the regulatory space.