Cotton Prices Fell Year Lows

Since February this year, the cotton futures price of the Zhengzhou Mercantile Exchange (the "Zheng Shang Shi") has risen to a record high above 33500 yuan / ton, and the cotton market has been going down all the way.

As of August 3rd closing, Zhengshang cotton futures main contract 1201 to 21210 yuan / ton closed, hit a new low in the year.

This price fell by more than RMB 9400/ tons compared with the contract's high level in February.

Domestic market slump, cotton demand continues to be weak.

According to the monthly report released by China Cotton Association in July, in June, the international market price oscillations downward, China's domestic macro environment, supply and demand fundamentals have not changed significantly, cotton prices continue to decline, but the decline is slower than in May.

Although the output of cotton is lower than that of the previous year, 6 million 360 thousand tons, but due to slow progress in sales, the turnover of commodity cotton turnover in the whole country increased year by year.

From the China Cotton Association's monitoring, the total inventory of cotton turnover in the whole country is about 925 thousand tons, up 174 thousand tons over the same period last year.

Besides, our country

International market, India relevant departments recently announced that in the last two months of 2010-2011 (August and September), India cotton exports will be fully liberalized.

Meanwhile, according to the July cotton supply and demand report released by the US Department of agriculture, the supply and demand relationship of cotton in the next year has been greatly alleviated.

It is estimated that global cotton output will reach 26 million 815 thousand tons in 2011-2012. It is estimated that global consumption will be 25 million 419 thousand tons, and the end of the world inventory will increase to 11 million 104 thousand tons, increasing by 599 thousand tons.

For cotton prices continued to decline, the industry expressed its view of the future.

Hebel, a Guangzhou futures analyst, said that the current cotton growth in China is good. Most cotton regions in early July are conducive to cotton growth and development. Cotton production is expected to increase this year.

In the case of domestic demand and supply is expected to turn better, there will be little room for cotton growth in the short term.

However, as the state announced the 2011 cotton temporary purchase and storage price of 19800 yuan / ton, this basically locked the lowest cotton price this year.

Shanghai mid-term analyst sees the thunder thunder to point out, the downstream textile factory because the order is few, basically stops purchasing, and continues to consume the stock primarily.

At present, the quotations of three and four grade cotton in some areas are lower than the state's temporary storage and purchase price.

At present, there are still signs of decline in the market.

At the same time, seeing thunder also said that it is worth noting that some enterprises in the bank pledge business, because the repayment is not in time, may eventually lead to the cotton auction to recover loans, the auction price of cotton may be lower than the market price, which will drive the spot market of the entire market to continue.