August 9Th Cotton Daily Review: Policy Expectations Are Heating Up And Stock Market Prices Are Rising.

US cotton rose.

Overnight

Rebound, December contract settlement price of 76, up 60 points.

USDA will announce the August balance sheet on Friday. It is expected that the Ministry of agriculture will reduce India cotton output and global end inventory.

CPI growth continued to fall.

China's CPI rose 1.8% in July, a two-and-a-half year low on Thursday, the Statistics Bureau said.

This provides room for the central bank to ease monetary policy.

PPI fell by 2.9% compared with the same period last year, indicating that enterprises are still in the inventory process, and the demand for upstream industrial products is not strong, and it is also one of signs that the economy is not improving.

Industrial data show that the economy is still searching for the bottom.

According to the Statistics Bureau, the industrial added value increased by 9.2% over the same period in July, a new low since May 2009, a fourth month consecutive digit increase. The total retail sales of social consumer goods grew by 13.1% over the same period last year, a new low since February 2006, and fixed asset investment grew 20.4% in May 2009.

These data are lower than market expectations, together with PPI data shows that China's economy has not yet seen signs of bottoming out, and has also increased market expectations for further easing of government policies.

High grade cotton matchmaking is more advantageous.

8, Henan, Nanyang, Zhengzhou and Shandong plain, Heze and other warehouses Xinjiang cotton futures warehouse offer price of 19150-19200 yuan / ton (public settlement); Jiangsu Xuzhou and Yancheng three warehouse cotton three yuan of public inspection quotes 18800-19000 yuan / ton, but two cotton quotes are very small, on the one hand is the spot market two or three grade cotton price difference is only 200-300 yuan / ton, and matching delivery two or three grade cotton difference price reached 800 yuan / ton.

Therefore, there are more than one grade and two grade cotton enterprises to choose to generate matching warehouse receipt delivery. On the other hand, cotton textile enterprises demand for grade I and grade two cotton is greatly reduced. Some large factories usually purchase one or two grade cotton directly from local factories.

Textile enterprises increased the number of inquiries, standards required.

Anhui Chizhou spot quotation is stable, but the volume is not large.

8, 3 grade lint quotes 18700 yuan / ton, 4 class 18400 yuan / ton.

It is understood that although the number of textile enterprises to increase significantly, but the cotton standard, especially the horse value requirements, to a certain extent, restricts the volume.

Type 200 enterprises are unable to pay for storage, and the market is unknown. Therefore, these enterprises change their business methods and sell them to the 400 type enterprises after takeover.

A slight improvement and overall stability.

Cotton yarn overall slightly improved, the upstream cotton mill inventory gradually digested, the general combed yarn trading is active, Shandong yarn market price is stable, a manufacturer 32S, according to cotton with different higher price 25500 yuan / ton.

Air spinning and compact spinning are better, air spinning 21S reported 21000 yuan / ton, 32S reported 25500 yuan / ton.

The market of Jiangsu and Zhejiang is stable, and the goods are slightly improved. The manufacturers have excellent quality 32S combs 31000 yuan / ton, and combed electricity has no report of 34000 yuan / ton.

Zheng cotton shrinkage increased.

On the 9 day, Zheng cotton opened up and left high. The highest level in the market was 19400. It failed to make further breakthroughs. The amplitude of the whole day was further narrowed, less than 100 points, and the volume of pactions was greatly reduced.

1301 closed at 19380, up 115 points.

The total turnover was 103 thousand hands on the same day, 105 thousand fewer than the previous trading day, and 1346 hands in 408 thousand positions.

As the price rose rapidly, the price difference between today's 1209 and zhengmian 1209 continued to shrink to 258 yuan, the lowest level since July 26th. The difference between Zheng cotton 1305 and 1301 was 75 yuan, and the price difference of July 30th reached 200 yuan.

The number of futures warehouse receipts has continued to decrease. As of today, the volume of futures warehouse receipts is 1963, a decrease of 22 compared with yesterday, and the effective forecast is still 13.

Today, Zheng cotton is going up and down, and the fluctuation zone is further narrowed.

The inflation rate dropped to below 2% in July. PPI and industrial added value continued to fall. The overall economic data were colder, the market looked forward to the follow-up policy, and the stock market commodities rose.

Domestic stock is stable, and resources are tight at present. There are some demand for replenishment of textile enterprises in the peak season, but funds are tight and production is reduced.

In addition, the uncertainty of the cotton policy has also made some enterprises cautious.

In the international market, India's domestic S-6 delivery price is close to 90 cents, which is in China.

Is also rising.

Today, the volume of pactions has been reduced, the positions have been reduced, and no breakthrough has exceeded 19400. The whole sector is still in a concussion. It is suggested that we should lower the price and throw higher prices.