Cotton Fell To &Nbsp; Short Or Current Adjustment.

US cotton futures fell slightly on Tuesday, the ICE index for March.

Today, Zheng cotton 1205 contracts have gone down.

It opened at 20725, the highest 20780, the lowest 20690, closing at 20715, down 5 points or 0.02% compared with the previous trading day.

Cotton (20685, -35.00, -0.17%) index holds 4234 days.

In the spot market, in December 21st, China's cotton price index (328) was 19101 yuan / ton, up 24 yuan / ton.

In December 20th, the import cotton price index (FCIndex S) was 104.28 cents / pound, up 0.41 cents; 1% tariff 16864 yuan / ton, up 68 yuan / ton; discount sliding quasi tax 17343 yuan / ton, up 65 yuan / ton.

Domestically, the Ministry of Finance adjusted the import tariff rate formula of cotton last week.

According to the new formula, the tariff of imported 50.2-100.16 price will be higher than the previous calculation method, which is more than 500 yuan / ton.

So cotton prices rose sharply on Friday.

A more important factor in supporting cotton prices is the State Reserve's market support policy.

As of the end of this week, 2011 cotton temporary storage and storage totaled 1616030 tons, Xinjiang totaled 1095800 tons, and the mainland accumulated 520230 tons.

The purchase and storage of State Reserve changed the balance sheet of domestic supply and demand, absorbed a large number of surplus cotton and lifted domestic cotton prices.

In spite of the fact that the National Reserve has kept cotton prices and guaranteed farmers' interests, the domestic textile enterprises have to use high priced cotton to raise their cost.

Especially in recent years, domestic labor costs have increased. At present, the cost of raw materials is higher than that of foreign competitors, and the overall competitiveness is falling.

Under the weakening demand in Europe and the United States, the domestic textile enterprises are getting worse, and the demand for cotton is more flagging. Therefore, although domestic cotton enterprises are at a low level, but because of the accumulation of their products, they will not have a strong desire to replenish their banks, which will restrict the increase of domestic cotton prices.

Judging from the trend of the disk, Zheng cotton 1205 opened high today, and it was pulled up after opening, but it soon rebounded. Then, despite a rebound, the overall downward shock and reduced positions.

Cotton can be adjusted in short term after 20800 successive shocks.

At present, it is recommended that early stage holders can continue to hold.