Zheng Cotton Rebounded On Schedule, The Market Continued To Weak Upward

First, the profits are exhausted, and the US cotton rebounded.

1, the US cotton planting area is lower than expected, the US cotton strong rebound.

This week (4.

04-4.

07 days), because last week the United States Department of agriculture predicted that the cotton planting area is lower than expected, and in addition to the triangular shape of the United States cotton, it has attracted some technical buying in the field, pushing up the United States and cotton at one stroke and breaking the edge of the triangular lane.

As of April, 07, the index contracted for 208 in May.

22 cents, up 13.

12 cents, or 6.

7%.

2, the downstream fundamentals are weak, Zheng cotton follows the outer market to stop.

This week (4).

06-4.

08 days), although Zheng cotton has boosted the upland of US cotton this week, however, due to the weak fundamentals of domestic cotton, Zheng cotton only showed a weak rebound pattern.

The main 1109 contract closed at 29370 yuan, up 12000 yuan, or 4.

26%.

Two.

1, the US cotton shipments broke the annual record, net contract is still negative.

According to the US Department of agriculture (USDA), 3.

25-3.

31 in a week, the US signed a net export of 3788 tons of land cotton this year, and shipped 118048 tons, the highest in the year. Net signed export this year is 227 tons of Pima cotton and 4354 tons of shipment.

In addition, the net signing of the next year is 60827 tons of upland cotton.

When China signed a net contract this week, it imported 4717 tons of land cotton and shipped 42093 tons this year. The net signed year is 703 tons of Pima cotton and 2676 tons of shipment, and the net signing of the next year is 23768 tons of upland cotton.

2, India and Brazil will continue to increase cotton production this year.

This week, some institutions in India and Brazil predict that the cotton output of the two countries will rise again this year.

Among them, the Brazil Cotton Advisory Committee (CONAB) recently predicted that cotton production in 2010/11 was 202.

760 thousand tons, an increase of 7 from last month.

740 thousand tons, an increase of 69 over 2009/10.

8%.

The Brazil cotton Exporters Association (ANEA) predicts that cotton production will reach 1 million 990 thousand tons in 2010/11, and the output will exceed 2 million tons in 2011/12.

In terms of India, the Ministry of agriculture of India predicted that the total output of cotton in India this year was 33 million 920 thousand packs (576).

60 thousand tons), higher than the 31 million 200 thousand package forecast (530) before the India Cotton Advisory Board (CAB).

40 thousand tons).

Three. Textiles

1, textile stocks continue to increase.

Because the situation of textile sales is not satisfactory, most textile enterprises' inventory is still increasing.

Seeing that the traditional peak season of consumption will be over next month, if the downstream purchase and sale can not be improved in the next two weeks, the enterprises in the entire industrial chain will be affected.

At present, the price of cotton yarn is showing a gradual decline as well as cotton spot.

This week, KC32S was 37000, flat compared to last week; JC40S was 44000, or 500 yuan.

2, cotton spot pactions are light, prices fall.

This week cotton purchase and sale is still slack, and some of the lower part of the cotton merchants are willing to lower their shipments due to factors such as maturity of loans, pre futures decline and textile sales insipid, but the actual turnover of cotton is not ideal.

China's cotton price index closed at 29592 yuan, down 260 yuan; the 527 level was 26770 yuan, or 139 yuan; 229 level was 30967 yuan, or 212 yuan.

Four, next week or continuation of weak rebound {page_break}

From the technical point of view, Zheng cotton is gradually stabilizing the 28000 tier platform, because the entire commodity market is now turning into a long pattern, especially with copper and glue as the representative of the market leader, so even if the basic cotton is not strong, but if there is no major bad news, Zhou Zhengmian will continue the trend of weak shocks, and is expected to test 30000 points, the price is expected to be active in the 28500-30000 point range, it is suggested that investors participate in the short term trend of the rebound, touch 30 thousand, if the reduction is proposed to lighten up.

In addition, in the medium term, the trend of Zheng cotton's decline is expected to turn into a trend of high volatility.