Zheng Cotton Futures Rose &Nbsp, And Spot Prices Stabilized.

　　 Recently, in terms of international cotton prices, most of the economic data released by Europe, the United States and China have been better, and market sentiment has tended to be optimistic. The US dollar index has dropped to support the rebound in commodity prices, and both the volume and volume of US cotton exports have both picked up. The government of India has restricted the export of cotton yarn and led to an increase in the price of inter country cotton.

Zheng cotton futures rose. Cotton merchant The mentality of selling again strengthens, and spot prices stabilize.

Li Xuerong, a senior researcher at CIC, believes that under the strong control of national policies, cotton prices have experienced a rapid decline and there are signs of bottom up. The main reason is that there is no change in cotton shortage and market growth.

Judging from the supply and demand of cotton market, the cotton gap still exists. China is the world's largest cotton producer, but also the largest cotton consumer. Its supply of cotton is as tense or even more intense than that of other parts of the world. Chinese farmers reduced cotton planting area by 12.3% in 2009-2010, while severe weather hit during the cotton growing season reduced cotton production by 11.4% in 2009-2010. Meanwhile, as the world economy began to recover, the demand for cotton increased, leading to an increase of 8% in cotton consumption in China.

Judging from the circulation of cotton, most of the cotton resources in the market are still concentrated in the hands of major cotton traders. Many cotton seeds in Hebei, Henan and Hubei are concentrated in cotton growers. In the short term, the fluctuation of cotton prices is a game between cotton producers and textile enterprises. With the trend of international cotton prices and the change of cotton futures prices, cotton producers have adopted a small quantity of shipments to test the market reaction, and cotton farmers also have the mentality of selling. At present, textile enterprises are still watching, and the purchasing intention of raw materials is weak. It is precisely because both sides are in wait and see, the market is light.

Although most cotton enterprises are optimistic about the future market, but because of hoarding funds, capital turnover is affected. Cotton merchant With the need to withdraw funds, some cotton merchants have the intention to ship, and with the tight liquidity of the market capital chain, the cotton sellers' psychology of selling will be further weakened. In addition, the capital market of textile enterprises has begun to appear loose, especially when some enterprises have run out of stock and strong desire to purchase cotton, which will promote the flow of cotton. The fluctuation of cotton prices is closely related to the financial level of Cotton Traders and the order situation of cotton spinning enterprises.

　　 Li Xue Rong At the same time, it is pointed out that cotton prices can hardly be reduced if cotton gap is not filled. But the rise in cotton prices will lead to an increase in global cotton production in 2011. Theoretically, cotton prices are expected to fall back to a long-term average after the supply and demand of cotton are rebalanced, but it is hard to return to the low level of 2008-2009 years.