Domestic Cotton Spot Prices Rose Slightly &Nbsp; The International Cotton Market Strong Rise.

According to the national cotton market monitoring system, as of December 10th, the national cotton picking rate was 96.4%, down 2.7 percentage points compared with that of the previous year, and the percentage of seed cotton sale (the proportion of picking) was 83%, down 6.4 percentage points from the same period last year.

Most cotton farmers are still reluctant to sell.

The external financial environment has weakened the impact of the international cotton market, and the market focus has shifted to fundamentals.

India's cotton export policy is still uncertain leading to continuous tension in the spot supply, encouraging the optimism of the US cotton sales data, and the continued rise in international cotton prices.

In December 10th, New York cotton futures contract settlement price in March 2011 was 136.97 cents / pound, up 4.63 cents / pound, or 3.5%, compared with last week; the international cotton index (M), representing the average price of the Chinese main port on the import cotton, was calculated at 1% tariff. The cost of import of the imported RMB was 28663 yuan / ton, up 1553 yuan / ton, or 5.7%; compared with last week, the import cost of the folded renminbi was 28953 yuan / ton, up by 1538 yuan / ton compared with last week.

In December 10th, the price of 32 cotton combed yarn was 34700 yuan / ton, down 2100 yuan / ton last week.

Looking ahead, the bull market will continue in the international market.

In the United States, the US cotton sales are booming, but the supply is tight. According to the latest weekly report of US cotton exports, as of December 2nd, the United States exported 73 thousand and 400 tons of upland cotton export volume to 65% tons during the week, compared with the previous week, with China's active procurement and contract volume accounting for 46.7%.

According to the US Department of agriculture's forecast of global cotton production and marketing in December 2010/11, the US cotton output decreased marginally.

In December 13th, the India government discussed whether to decide whether to increase the export ceiling of cotton. From the present point of view, the market is more inclined to India cotton and the international market will go further and further away.

In Pakistan, it is reported that the government may ban cotton yarn exports from next year, which also provides a reason for international cotton traders to hoard cotton.

On the whole, the basic pattern of the international cotton market is stable, and cotton prices will remain strong in the short run.

Domestic cotton market is difficult to continue to strengthen.

In late December 10th, the central bank again raised the deposit reserve ratio to 18.5%, further tightening liquidity, coupled with strong market tightening expectations. The future of cotton products, including agricultural products, will continue to bear the pressure from the macro level.

From the cotton market fundamentals, the market wait-and-see atmosphere is strong, textile enterprises purchase real estate cotton enthusiasm is still not high, as of the beginning of December, the national cotton industry inventory about 35.1 days, an increase of 6.1% over the same period last year.

Yarn and cloth sales are slowing down, inventories are increasing and prices are still falling.

To sum up, the current cotton price has stabilized and the price of purchase and sale has picked up slightly, but there are many restrictive factors between the policy surface and the downstream industry chain. Cotton prices will be dominated by weak shocks.