Regulatory Policies Are Effective &Nbsp; Cotton Prices Gradually Return To Reason.

In November 19th, the national cotton price B index, representing the average price of the standard grade cotton in the mainland, was 28638 yuan / ton, down 2582 yuan / ton, or 8.3%.

Zhengzhou cotton futures contract settlement price of 27545 yuan / ton in January 2011, down 2125 yuan / ton compared with last week, or 7.2%.

Beijing's national cotton trading market electronic matching pactions in January 2011 the average contract price of 27143 yuan / ton, compared with last week fell 3622 yuan / ton, or 11.8%.

Hefei national cotton trading center electronic matching paction contract settlement price in January 2011 was 27420 yuan / ton, down 2540 yuan / ton compared with last week, or 8.5%.

In November 19th, the average purchase price of the 3 grade seed cotton in the mainland was 5.95 yuan / kg, down 0.91 yuan / Jin, or 13.3%, the cost of cotton lint 25545 yuan / ton, down 4282 yuan / ton, or 14.4%; the average price of 3 cotton seed purchase in Xinjiang was 5.93 yuan / Jin, which dropped by 0.87 yuan / Jin, or 12.8% yuan.

Preliminary analysis and judgement, at present, the leading factors of domestic cotton cities are strong, and there is still some room for policy adjustment in the late stage.

From the perspective of annual market development, the unrestrained explosive market has ended, and now the market has entered the stage of macroeconomic tightening, inflation control policy and the relatively tight stage of cotton production in the year, especially high grade cotton. However, the gradual return of cotton market to reason is the general trend.

Under the influence of China's macroeconomic policy and the European debt crisis, commodity prices continue to bear pressure and international cotton prices fall sharply.

In November 19th, the ICE cotton futures contract settlement price in December was 127.90 cents / pound, down 12.28 cents / pound compared with last week, or 8.8%, representing an international cotton index (M) of 163.25 cents / pound on the average price of the Chinese main port on imported cotton, down 8.80 cents / pound, or 5.1%, compared with last week.

According to the 1% tariff, the discount price is 27677 yuan / ton (at 6.6408 exchange rate), which is lower than the domestic market 961 yuan / ton, the price difference narrowed by 1183 yuan / ton last week. According to the sliding tax, the discount price to the factory price is 27977 yuan / ton, which is lower than the domestic market 661 yuan / ton, and the price difference narrowed 1197 yuan / ton.