Weakness In Domestic Cotton Futures Market No Longer Erupted

China's cotton reserve management company recently announced that the policy regulation and control efforts continued to increase in recent years, and the tightening of monetary policy was expected to intensify. Commodities continued to face pressure and the cotton market was rapidly cooling down.

At present, the domestic cotton futures and spot markets are exhausted. industry chain From top to bottom, the atmosphere is strong and cotton farmers are reluctant to sell. Many cotton traders have suspended seed cotton purchase, and intend to increase sales of lint. But most textile enterprises "buy up or not", and enterprises with inventory simply stop purchasing, and the market price of cotton gauze falls down, new additions and odd numbers of enterprises are less, and cotton trade is slack.

Data show that in November 19th, the price of 3 grade cotton in the mainland was 28638 yuan / ton, down 2582 yuan / ton compared with last week, 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%.

Meanwhile, the average price of seed cotton purchase in the mainland showed a downward trend. November 19th, mainland 3 level Unginned cotton The average price of the purchase was 5.95 yuan / kg, down 0.91 yuan / kg, or 13.3%; the average purchase price of 3 seed cotton in Xinjiang was 5.93 yuan / Jin, down 0.87 yuan / Jin, or 12.8%, and the cost of lint cotton was 24493 yuan / ton, down 4055 yuan / ton, or 14.2%.

Despite the late October 2010 to early November, China's cotton reserves for China in 2010 Cotton yield The survey found that the cotton quality and yield were all adversely affected by the disaster of cotton sowing during this year, such as low temperature and continuous heavy rainfall. The cotton planting area, output per unit area and total output in China decreased slightly.

However, the preliminary analysis and judgement of China cotton reserve indicated that the domestic cotton market has a strong leading factor and there is still 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.