Cotton Prices Are Difficult And Difficult.

Around March every year,

The mechanism of storage and storage is limited.

In order to protect the interests of cotton farmers and protect the enthusiasm of cotton growers, the state started the purchasing and storage mechanism from 2011. The price of cotton purchase and storage in 2011/2012 reached 19800 yuan / ton to stabilize cotton prices. Even after the European debt crisis continued to exert pressure on commodities and the USDA released the monthly cotton supply and demand report, the price of Zhengyang cotton was still holding 19800 yuan / ton of storage price.

Entering the 2012, after the cotton price rebounded, the weak market began to fall. The pessimism of the market began to revive. The price of the 2012/2013 purchase and storage of the investors concerned was released at the end of February. Although the purchase price of 20600 yuan / ton is different from the 21000 yuan / ton expected by the market, the state raised the purchase and storage price of 600 yuan / ton, indicating that the low cotton price era has become a past tense, and the possibility that the cotton price will drop further down is very small.

Cotton planting intention to reduce support cotton prices

In March, agencies will be released one after another.

Storage and storage is about to end.

The new cotton purchase and storage in 2011/2012 will end in March 31, 2012. It is estimated that domestic cotton storage and storage will reach about 3 million tons.

The surplus cotton in the market is basically returned to the national reserve. The question is, in order to meet the capacity of the cotton storage and storage in 2012/2013, how will the country turn round this year? I guess, with the current cotton situation, before the end of the storage and the spring sowing area of the cotton, the country can not choose to throw it away, because it will cancel the effect of the 20600 yuan / ton storage price and the stable cotton planting area in the new year.

In addition, it is unlikely that the state will choose to lose or sell reserves. Taking into account the cost of cotton, the cost of warehousing, the cost of capital interest and the cost of dumping and storing, the state needs to wait until the market price of cotton rises to about 20700 yuan / ton before it can be sold.

Considering the factors affecting the dumping and storage, the timing may be between 6 and July.

"Bad season" decides that cotton prices are difficult to make.

Market demand for peak season in March did not arrive as scheduled, and the peak season continued.

In 2011/2012, global cotton is in a state of excess, coupled with the fragile demand in the lower reaches, which undoubtedly leads to a further surplus of cotton.

The market thought that the stock of cotton in the downstream textile enterprises is not high. In March, a small wave of replenishment should start.

Downstream cotton enterprises mentality is more pessimistic, generally not optimistic about the cotton market outlook.

Under the pressure of supply pressure, demand determines the rising space of cotton prices.

Now that the peak season is not prosperous, cotton prices are hard to say.

To sum up, the cotton season is not strong enough. Under the influence of common factors, such as relying on the mechanism of purchasing and storage, declining cotton planting area and the anticipation of throwing and storing after the end of storage, the cotton price is very difficult.