Cotton Market Demand Is Not Strong &Nbsp; Low Cotton Prices Show Weakness.

March 29th, Zhengzhou

Rumors fell

New lake futures analyst Liu Qing pointed out that the recent domestic market

I also understand that since last week, cotton tax has been spread on the market.

But Liu Qing analysis, up to now, there is no real bad interest in Cotton City, and after digestion of bad rumors, cotton prices tend to reflect the fundamentals.

In March 29th, the 1109 contract of zhengmian main force reached 376860 hands, which was warmer than that in March 28th.

However, for the current fundamentals, analysts are not optimistic about short-term cotton prices.

Demand is not good enough.

Analysts believe that the weak cotton prices and cotton market demand is not strong.

Liu Qing analyzed that the deep adjustment of Zheng cotton was a concentrated reflection of the release of no effective demand.

She found that the demand for cotton is in the peak season, but the demand for downstream cotton industry is not booming.

"The average inventory of downstream textile mills has increased to more than one month. This level is higher than that of the previous peak season, and the inventory growth rate is accelerating. In the first two months, the average inventory of textile mills remained within one month.

The paction from the downstream manufacturers also confirms this feature, and the paction is relatively light. "

Shanghai mid-term futures analyst also expressed his approval.

He pointed out that from the supply situation, the supply and demand of cotton in the future will be improved.

Recently, the cotton release intentions report released in 2011 showed that the intention of planting cotton in 2011 has resumed growth, and the area is expected to rise to 78 million 270 thousand mu, up nearly half of that in 2010.

Among them, the three cotton areas all showed a recovery growth trend.

The report analyzed that the average price of seed cotton in 2010 was 10.94 yuan / kg, up to 73.4% due to the sharp rise in seed cotton prices in 2010, which is conducive to the restoration of cotton planting area.

Since January 2011, cotton prices have continued to rise. In February, the price of seed cotton rose to 11.5 yuan / kg, which greatly increased the 20% cotton reserves and further stimulated cotton picking up.

If the cotton planting area increases, the cotton supply and market forecast for the new year will be ensured.

Cotton prices in 2011 will not repeat the sharp rise in the supply shortage in 2010.