Cotton Futures Prices Are Higher And Lower. Temporary Wait-And-See Is Better.

On Monday, it closed higher on account of investors' short refunds, and was released at the spot before the July contract expires next week. The spot July cotton contract rose to a 3 cent daily limit of 82.98 cents per pound. The cotton contract in December rose 0.84 cents at 71.86 cents a pound.

today

1301 the contract is high and low.

Opened at 19460, the highest 19485, the lowest 19380, closed at 19405, up 20 points compared with the previous trading day.

Cotton index increased by 9522 days on hand, with a turnover of more than 170 thousand hands.

Spot market, China's cotton in June 19th

(328) a decrease of 8 yuan / ton for 18325 yuan / ton.

In June 18th, the FCIndex S index was 87.18 cents / pound, up 0.28 cents from yesterday.

Last week, the US cotton rebounded sharply, mainly due to the positive report of the US cotton export and the purchase price of cotton raised in India.

According to the US Department of agriculture (USDA) released in June 14th, the US cotton export weekly, June 1st -6 7, this week, the United States cotton net signed sales of 180465 tons, compared with the previous week and the average level of nearly four weeks increased significantly.

Mainland China signed 168785 tons of contracts, accounting for more than 90% of the total contract.

The market expects that the Chinese government will continue to purchase large quantities of cotton and cotton in order to increase its domestic stock level.

According to customs import data, in May 2012, 500 thousand tons of domestic cotton imported, an increase of 357 thousand and 200 tons, an increase of nearly 250%. At the same time, domestic cotton imports totaled 4 million 250 thousand tons in 2011/12, an increase of 113.6% over the same period last year.

A large increase in domestic imports will enhance the price of American cotton, but it will be limited for domestic cotton prices.

Large imports and high inventories will restrict cotton price increase in the future.

At present, the market bulls are worried about the future cotton production in addition to their hopes of the state's purchasing and storage policy.

Information from the National Defense Ministry shows that the rainy area in the flood season this year is obviously larger than that of last year, and the regional heavy rainfall process is more frequent than that of the whole year. Flood disasters may be heavier than last year, and the possibility of a large-scale flood is not ruled out, especially the greater the probability of the great floods occurring in the Yangtze River.

The Yangtze River Basin is one of the three largest cotton producing areas in China. The planting area accounts for about 25% of the total area of the country.

Judging from the trend of the disk, today, Zheng cotton 1301 opened high, the concussion rose after opening, the highest to 19485, late diving and holding positions increased.

Cotton prices have recently been rebounded by the rise in US cotton prices, but we believe that the base of the rise is weak before the downstream consumption is improved.

It is suggested that we continue to wait and see.