Market Panic Spreads &Nbsp; Cotton Concussion Pricing

Overnight, due to the poor overall atmosphere of the external market environment, Chicago's grain market showed a sharp decline. ICE futures continued its downward trend last Friday. The May contract was locked down in the limit shortly after the opening date, and the volume of market volume shrank sharply.

At present, market buying is hard to come up, and at the same time, the purchase of high positions is eager to sell.

News, to boost India's domestic textile industry, the Federation of textile industry recently said that it would remove the import tariff of chemical fiber and cancel the anti-dumping duty, and consider that the consumption tax on textiles should be maintained at 4%. Therefore, the consumption tax on chemical fiber products will also be reduced to 4%.

Man-made fibres and cotton in the global textile fiber materials for 2009/10

In the international market, although the ICE futures market closed down, the quotation of China's main port of import cotton has changed little, but the linkage between domestic and foreign markets is declining.

On the same day, ICE futures continued to decline in Asian trading hours, and Zheng cotton futures continued to be deeply callback.

With the fall in prices, the Cotton Traders' psychological reluctance to sell has been loosened, but the textile mills are still on the sidelines, and imported cotton is still flat.

At present, cotton prices have no signs of stopping. Textile mills should watch more and move less.

Domestic market, domestic cotton spot prices continued to maintain a slight upward trend yesterday, some textile enterprises began to replenishment, the purchase of medium and high grade cotton.

In the market, seed cotton prices go higher after the holidays.

Although the trend of cotton futures is not good, the overall price of domestic spot prices remains strong, which is slower than the previous trend.

The cost of standard grade lint processing is close to 30000 yuan / ton. Because of the greater risk, buyout enterprises are generally cautious, while cotton farmers have a strong psychological desire to sell or sell.

Spot quotation. In February 22nd, the price of C/A cotton in the United States was 230.30 (cents / pound, the same below), and the general port was folded.

Market analysis, overnight market sealed off, the market volume has shrunk dramatically, the current high speculative market eager to sell, the market is hard to buy, so cotton prices will continue to decline inertia.

On the whole, the fundamentals of cotton have not changed much, and the commodities and stock market have entered the adjustment market.

Zheng cotton 09 contracts support 30800.

1111 below the contract, support 27500.

Operation suggestion, wait and see.