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Cotton Prices Are Shocking, Climbing Peak

2010/11/2 13:53:00 88

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The first trading day in November, Zhengzhou

cotton

Futures also usher in a "free from vulgarity" of the beginning, the varieties of contracts opened in the morning after the concussion upward, around noon around the limit.

At the close, the two contracts of zhengmian 1101 and 1101 were still sealed at the price limit, and the main contract 1105 opened at the end of the trading limit, closing at 28510 yuan / ton, with an increase of 4.74%.

And two months ago, the price of the main contract was still 18000 yuan / ton.

Cotton may be in the process of revaluation, compared with other agricultural products and cash crops, cotton yields were significantly lower than before.

Supply shortage

The revaluation of cotton prices is mainly caused by cotton at home and abroad.

supply

To tighten the fundamentals is also the key for capital to continue to hype cotton at high prices.

The US Department of agriculture (USDA) October report showed that the global cotton supply and demand gap in the 2010/2011 year was 890 thousand tons, which directly led to the continued decline in the inventory and consumption ratio at the end of this year. The inventory consumption ratio will drop to 37% this year, the lowest point since 1993/1994, which laid the keynote of this year's cotton bull market.

Domestic supply pressure can not be underestimated.

China Cotton Association report shows that the new cotton market has been delayed for about half a month this year, and the purchase price of new cotton has increased substantially.

The average purchase price of seed cotton in September this year was 9.46 yuan / kg, up 3.51 yuan / kg compared with the average price in September last year, an increase of 58.99% over the same period last year.

Xinjiang seed cotton purchase price rose the largest, up 3.67 yuan / kg, or 62.20%, for the first time exceeding the the Yellow River River cotton area.

In order to cope with the slow growth of new cotton market, the departments concerned have implemented the national cotton store sale from the end of August this year to the middle of October to alleviate the urgency of the cotton enterprises' use of cotton and put 1 million tons of cotton reserves into the market.

Owing to the fact that the throwing and storing of cotton is in short supply of new and old cotton, the supply of cotton is very short. Cotton reserves have not only become the main cotton supply in the market, but also become a rush for buying by textile enterprises.

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Therefore, the price of dumping and storage has also been increasing, rising from 18000 yuan / ton in August to 25000 yuan / ton at the end.

The listing is postponed, the price is too high and the output of cotton can not keep up. The latest estimate of USDA is that China's cotton output is 6 million 858 thousand tons this year, and the supply gap is as high as 4 million 28 thousand tons, a record high.