The Cotton Market Temporarily Stabilized &Nbsp; Chen Cotton Was "Hot".

October 28th ICE

29 - 30 October, international cotton traders and domestic traders cotton quotations for far months in spite of high rise, but from the 2011/12 global cotton supply and demand pressure and economic downside risk increasing perspective, cotton far - month contract prices are mostly "high, low paction".

Recently, the order and demand of Australia cotton in port 11 and December were acceptable, while India cotton and West Africa cotton became "hot potato".

It is understood that in 10, 11, and December, the Australian cotton merchants arriving in Hong Kong were selling at a loss, partly due to the repurchase of international cotton traders in 2011 and April of 2011.

Some cotton traders believe that the main reason for the current boom in major agricultural products (including cotton) is the short-term easing of the European debt crisis. The US economic data are slightly better than expected. The cotton rise has completely followed the economic factors. However, from the basic level of global cotton supply and consumption in 2011/12, the conditions for supporting cotton price rise or high operation are not established.

Although Morgan and Stanley have increased the volume of China's cotton imports again, the premise is that China's national reserves will exceed 2 million tons, and that after May 2012, the adjustment of the Chinese government's reserve policy is not timely and China's consumer market will start after March.

Therefore, in the middle of November, the ICE futures contract in December will still test the support position of 99 cents.

It is understood that recently, a large international cotton trader in Qingdao, Zhangjiagang and Shanghai ports at the price of 18400 yuan / ton, 18600 yuan / ton to purchase 2010/11 cotton and West Africa cotton in the year, the main target is the small and medium-sized traders in the ports of the cotton, and the requirements must be reported cotton, therefore, although some letters of credit are about to expire, the cash flow pressure is relatively large domestic cotton import and export enterprises have the intention to reduce the warehouse, but subject to import quotas and restrictions.

Since the 1% tariff quota can be postponed until the end of February next year, the tariff quota will be invalid after the end of December. Therefore, most of the short-term domestic enterprises will use the sliding tariff quota.

Several traders reacted. On the 29.30 day, the paction price of the four grade new cotton in the mainland has dropped to 18000-18200 yuan / ton. Therefore, some cotton enterprises generally quoted less than 18500 yuan / ton for India cotton S-6 in 2010/11, and the price of M cotton in Burkina Faso and Mali was also within 18800 yuan / ton.

Entering the middle and late 10 months, several large international cotton traders began to enter the domestic lint circulation link. Xinjiang production and Construction Corps, Xinjiang local cotton enterprises, and warehouses in Shandong, Jiangsu, Hubei, Hebei, Anhui and other provinces all appeared foreign businessmen.

1, since early October, an international