Continuous Dumping And Storage Of National Reserves And Rising Cotton Prices

Once unknown cotton began its legend.

During the Mid Autumn Festival and the National Day "double section" gap, when investors were attracted by the international gold price of 1300 US dollars / ounce, perhaps they had not noticed that the cotton price which had long been out of date had reached the height of cold.

Yesterday, Zheng cotton 1105 contract closed at 22185 yuan / ton, once again refreshed since the listing of the high point, or 2.68%, turnover of about 1 million 256 thousand hands.

In the past two months, the Zhengzhou cotton index has soared by about 30%.

On the spot side, in September 28th, China's cotton price index (CC Index 328) closed at 21836 yuan / ton, up 581 yuan / ton from the previous day, and once again refreshed a ten year high.

Insiders say that

Even the US disk.

Facing the surge of internal and external market, from August 10th this year,

However, judging from the futures market, speculative funds seem to be somewhat numb with regard to the policy of dumping and storage, and do not see the shadow of massive withdrawal of capital from cotton futures.

Although there are two trading days away from the National Day holiday, the volume of the 1105 contract of Zheng cotton futures yesterday was only slightly lower than that of the 1 million 760 thousand day before yesterday, but its holdings increased slightly to 380 thousand.

This achievement is based on many Futures Company raising the margin level of customers. According to a reporter from a number of Futures Company customer service departments in Shanghai, as of September 28th, the margin of cotton futures trading increased from 15% to 24%.

What is even more bizarre is that since the first day of "cotton opening and releasing cotton" in August 10th, the weighted average paction price of the national cotton auction has surged from 18208 yuan / ton to 21776 yuan / ton (328 cotton price is 22374 yuan / ton).

"More and more raw materials" are more common, and cotton throwing is no exception.

Shanghai mid-term analyst sees thunder thunder.

According to its introduction, the throwing and storing of cotton is not selling at the lowest price, but by auction, and the final price is high.

At the same time, he pointed out that the domestic cotton reserves are also less, and it is difficult to play a real inhibitory effect on the current price.

Insiders pointed out that despite the continuous introduction of domestic dumping and storage policy, the key reason for the rise in cotton prices may be the gap between supply and demand of global cotton, and domestic policies can hardly conceal the global shortage of cotton, which is the illusion that cotton prices are rising and falling.

According to the US Department of agriculture, the world's cotton consumption has been more than 2005/2006 since the year, resulting in tight global cotton stocks.

The gap between production and consumption in 2009/2010 expanded to 16 million packages (about 170 kg per pack). It was expected to shrink to 3 million 500 thousand packs in 2010. However, the global stock prices continued to shrink in the end of 2010, leading to a continuous rise in global cotton prices.

The agency said global cotton stocks in 2010/2011 were expected to decline for the fourth consecutive year to the lowest level in 14 years.

However, under various advantages, many domestic brokers do not recommend "high price" in the historical high price of cotton.

Beijing interim report said that considering the high price of cotton, the upcoming National Day holiday and the national increase in reserves and other factors, it is suggested that investors should adjust their last two trading days to a reasonable percentage of positions so as to avoid risks.