Cotton Daily Review (12.15): Zheng Cotton Will Continue To Fall &Nbsp; Next Year Will Adjust The Tax Formula.

ICE cotton rose slightly.

The rising cost of borrowing in Italy and the tight financing in Europe brought pressure on the market. The US dollar index rose sharply, and the stock market fell overnight. ICE cotton continued to tumbled. It fell below 85 cents and reached a new low in March. The settlement price of the contract in March was 85.12, down 219 points.

European debt development.

Overnight, the Italy 5 year treasury bond auction yield reached 6.47%.

HSBC December China manufacturing PMI initial value of 49.

HSBC's 15 PMI value for manufacturing in December was 49, still below 50, but the 32 month low (47.7) rebounded last month.

HSBC China chief economist said the index showed a steady growth trend in December, but the growth momentum was weak, and the risk of export and real estate market decline has not yet been completely released.

The cotton slip tax formula will be adjusted next year.

The Ministry of Finance announced on 15 th that in 2012, it continued to implement a sliding tax on certain quantities of cotton imported from the tariff quota, and adjusted the formula of sliding duty tax appropriately. The effect is that the higher the import price, the lower the applicable tax rate.

The concrete formula has not been announced yet, but the industry speculated that the benchmark of sliding tax calculation may be raised from the current 11397 yuan / ton (duty paid price), which will increase the cost of imported cotton at a certain price.

More importantly, the amount and time of the issuance of quasi tax quotas will have a substantial impact if the quantity is less and the time is postponed, and domestic cotton prices will be further supported.

Because of the large difference between inside and outside cotton prices, this will naturally increase the cost of raw materials and weaken the competitiveness of textile enterprises.

Storage and storage increased steadily.

On the 15 day, 121600 tons were planned to be collected and 44620 tons were actually traded, and the daily turnover was reduced by 1860 tons compared with the previous day.

Among them, 27160 tons were sold in the territory and 17460 tons in the mainland.

Storage and storage totaled 1575920 tons (1072280 tons in Xinjiang and 503640 tons in the mainland).

The quality of seed cotton slipped, and the difference between high-grade cotton and cotton increased.

With the acquisition in the late stage, the decline in seed cotton quality led to a reduction in corporate acquisitions.

Hebei Baoding 1 enterprises responsible person said, nearly 2 days basically received no grade 3 cotton, other grades of cotton quality is poor, contain many more, color yellow, mixed level phenomenon is outstanding.

Enterprise for water miscellaneous, "three silk" too much, resolutely not to accept; for the dark color, the horse is not enough to press the price.

This resulted in a decline in seed cotton turnover.

On the same day, the weak 3 grade seed cotton reported 3.90 yuan / jin (lint 38%, moisture regain 13%), 4 level 3.80 yuan / jin (same as above), unified flower 3.70 yuan / Jin, all fell 0.03-0.05 yuan / Jin yesterday.

As the textile enterprises want to buy more than 3 cotton, cotton enterprises are reluctant to sell, pushing up the price of grade 3 cotton.

On the 15 day, the lint price of grade 3 lint was quoted at 19700 yuan / ton (pick up, gross weight, and the same ticket), up 200 yuan / ton compared with yesterday.

Weak 3 level 18700 yuan / ton, 4 level 18400 yuan / ton, weak 4 level 17900 yuan / ton, unchanged from yesterday.

Cotton price difference between high and low grades is widening.

Zheng cotton rebounded slightly.

On the 15 day, Zheng cotton opened low and maintained a weak position throughout the day. The turnover increased, and there was a lack of follow-up buying to follow up.

Transactions increased and positions decreased.

1205 closed at 20365, down 110 points, 1209 to 20860, down 85 points.

The total turnover was 58 thousand and 100 on the same day, an increase of 25 thousand and 900 hands, with a total holding of 219 thousand and a reduction of 2642 hands.

With the storage and storage exceeding 1 million 500 thousand tons, the market is worried that there will be gaps in the late high-grade cotton, and the difference between the 3 and 4 cotton prices in the spot market will widen.

From the current media survey, farmers' intention to grow cotton will drop next year.

The fundamentals are stable, but the stock market continues to fall and the external risks make Zheng cotton under pressure. The adjustment of the imported cotton sliding quasi tax formula will have some positive effects next year, focusing on the trend of the outward market tonight, for reference only.