Cotton Prices Plunged &Nbsp For Three Consecutive Days; &Nbsp; Inflection Point Or Coming.

Before the rally was fierce.

Previously, cotton prices have gone up sharply since September due to a significant reduction in cotton production in the main producing area of nearly 50%, as well as market demand and capital speculation. Previously, reporters had been informed that their purchase price rose to 6.5 yuan / Jin from 3 yuan / kg in less than two months, or more than 116%.

At the same time, the cotton price index has also seen a sharp rise in 30 consecutive trading days since September 2nd.

As of November 11th, the cotton price index closed at a record high of 31302 yuan per ton of cotton prices, compared with 18012 yuan / ton in September 2nd, or nearly 74%, up more than 121% over the same period last year.

But cotton prices are rising on a 12 day basis.

After 3 consecutive trading days, especially the 16 day drop of 1070 yuan per ton, the cotton price index closed at 29916 yuan / ton and returned to below 300 million lines.

Related to this is, "cotton prices in major production areas are also sharply callback."

On the 15 day, Zhao Hong, a cotton analyst at Zhuo Chuang, said that the purchase price of seed cotton in Shandong was between 6 yuan / Jin - 6.1 yuan / Jin, compared with last week, which dropped 1 yuan / Jin.

In addition, Zhao Hong also said, "downstream cotton yarn market is also different optimism.

According to data from Zhuo Chuang, as of 15 days, cotton yarn prices fell by 4000 yuan to 6000 yuan per ton in just 3 days, or nearly 100%.

"It is not an accident that the price of cotton is falling."

Zhao Hong said that after the rise, the cotton market has no market price, and the market paction is not optimistic. "This has increased the risk of high price seed cotton purchase."

Reporters interviewed previously learned that some cotton enterprises in Shandong have stopped buying cotton.

In addition, Zhao Hong also believes that the negative level of policy is also accelerating the decline in cotton prices.

16, there is news that the NDRC will introduce a number of measures to control food prices rising too fast, "especially to increase the intensity of the punishment of cotton speculation."

Earlier, the Statistics Bureau released data that China's CPI rose 4.4% in October, a two-year high.

"The coming of the macro adjustment will significantly increase the psychology of selling cotton spot trade."

Zhao Hong analysis believes that the withdrawal of market speculative funds accelerates the fall of cotton prices.

Affected by this, Zhao also expects cotton prices to rise in the future with great resistance.