Market Confidence Needs To Be Restored To &Nbsp.

Overnight, under the pressure of continued downward pressure on cotton prices in China, ICE cotton futures were weak after opening, but with the decline in the US dollar and the general rise in commodity markets, cotton prices reversed the decline, but not much.

Investors will continue to wait and see before the US cotton sown area report comes out.

News, six months ago, as China and the demand for strong, the export price of cotton cotton is the highest price higher than ICE futures 17 cents, and the current cotton price is the first time this year lower than the ICE futures price, because the current cotton exports many competitors, in order to complete the new 170 thousand tons of exports, cotton producers generally cut the export price of cotton.

International market, in June 28th, although the US contract in the past month fell, but because of the Cotton merchant Generally speaking, the short-term demand is generally favorable. Therefore, the price of the main port of China's cotton imports in June 28th basically remained stable compared with that of the previous day. Only C/A cotton and FiberMax cotton fell in the United States, but the remaining varieties remained unchanged. Recently, domestic textile enterprises have begun to replenish the storehouse, some cheap and good Southern Hemisphere varieties are favored by the spinning enterprises, while the sales of American cotton and cotton are slow and the quality is difficult to guarantee.

Domestic market, 28 days, domestic Cotton spot Prices continue to fall, and some of the major textile enterprises with relatively stable early quotations have come up with a substantial price adjustment phenomenon. The three grade lint purchase price is concentrated at 23400 yuan / ton, and four grade 23000 yuan / ton. The current spinning mill's product inventory is steadily rising, mainly because the loom factory is in order to avoid risks, stop production and stop more, and the sales pressure of cotton yarn is bigger. Starting from July 1st, China will reduce import tariffs on textile raw materials such as blended fabrics, linen yarns and other textile materials. The import tariffs on blended fabrics will be reduced from 12% to 6%. This will affect cotton consumption to a certain extent. Taking into account the guideline of 19800 yuan in the national storage and storage price, the wait-and-see mentality of textile enterprises is strong, waiting for the price to return further.

Spot quotation. In June 28th, the US C/A cotton quotation was 170.10 (cents / pound, the same below). RMB General port trade pick up price 28409 yuan / ton (according to sliding tax calculation, the same below). Australia cotton quotation is 175.10, discount general port trade port delivery price 29239 yuan / ton. The quotation is 177.35, and the average port trade delivery price is 29583 tons. The quotation for West African cotton is 194.21, and the general port trade delivery price is 32313/ tons. National cotton price A index 26269 yuan / ton, down 46 yuan; B index 24306 yuan, down 51 yuan.

Market analysis, December contract price in the vicinity of 120 cents / pound waiting for the news outside the guidelines outside the report of the US cotton sown area report, the market is difficult to deal with volume. After Zheng cotton broke the low point, the price began to seek support from the reserve price. Because of this, the underlying space is limited.

Operation suggestion, short air continues to hold.