Domestic Cotton Prices Are Running Smoothly In The Near Future.

In recent years, the domestic cotton price has been running smoothly, and the inquiry and purchase of the downstream enterprises has increased. The price of cotton yarn has increased slightly, and the demand for polyester staple fiber has also been enlarged. PTA futures prices continue to rise and further promote the price of polyester staple fiber.

Some cotton producing areas in the mainland have more rainfall, while zhengmian futures prices have risen, but spot prices remain stable.

In August 10th, 32 cotton combed yarn prices were quoted at 25440 yuan / ton, up 30 yuan / ton compared with last week, or 0.1%, down 2310 yuan / ton compared with last week, or 8.3%, and polyester staple price 10520 yuan / ton, up 300 yuan / ton compared with last week, or 2.9%, down by 2380 yuan / ton, or 18.4%.

The national cotton price B index, representing the average selling price of the standard grade cotton in the mainland, is 18532 yuan / ton, up 3 yuan / ton compared with last week, or 0.02%, down 813 yuan / ton compared with last week, or 4.2%.

The average selling price of standard lint is 18751 yuan / ton, unchanged from last week, down 889 yuan / ton, or 4.5%.

Zhengzhou cotton futures contract settlement price in September 2012 was 18660 yuan / ton, up 410 yuan / ton compared with last week, or 2.2%, down 1805 yuan / ton compared with last week, or 8.8%. The average price of electronic matching September 2012 in the national cotton trading market was 18931 yuan / ton, up 143 yuan / ton compared with last week, or 0.8%, down by 617 yuan per ton, or 3.2%.

National Bureau of Statistics recently released data show that in July, the national consumer price level rose 1.8% year-on-year, the lowest growth rate in 30 months, while the total retail sales of social consumer goods grew by 13.1% over the same period. The value added of Industrial Enterprises above designated size increased by 9.2% over the same period last year, all lower than the same period last month and last month. In addition, the General Administration of customs statistics showed that in July, China's export growth rate was only 1%, significantly lower than market expectations.

The above data reflect that China's economy is still in the process of bottom finding, and external demand is still weak.

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In the early stage, the sales situation remained unchanged.

In August, the textile industry will soon enter the traditional peak season. However, enterprises are generally pessimistic about the future market, and prudent in the procurement of raw materials, it is difficult to drive cotton sales to rise significantly.

The survey report on China's cotton industry released recently by China cotton reserve management corporation, which was built by the China national cotton market monitoring system, showed that the proportion of enterprises preparing to purchase raw materials accounted for 8 percentage points from the previous month, while the enterprises with a wait-and-see attitude increased by 15 percentage points from the beginning of August.

It is expected that domestic cotton prices will continue to be dull in the short term. If the weather is favorable, the cotton prices in the new and old year are expected to be smoothly connected.

The recent drought in the United States and the lack of rain in India all affect the growth of new cotton. The market is worried that the India government will ban India cotton exports again.

However, the USDA monthly released in the evening of August 10th raised the cotton output of the new year and substantially raised the end of the new year's inventory. New York cotton futures suffered a heavy setback and completely retreated the previous gains.

In August 10th, New York cotton futures contract settlement price in October 2012 was 72.9 cents / pound, down 0.3 cents / pound, or 0.4%, compared with last week.

The international cotton index (M), which represents the average price of the Chinese main port on the import cotton, is calculated at 1% tariffs. The cost of import is 14367 yuan / ton, up 673 yuan / ton compared with last week, or 4.9%, lower than the domestic market 4165 yuan / ton, the price difference narrowed 670 yuan / ton last week.

Calculated, the cost of import of RMB is 15169 yuan / ton, up 514 yuan / ton compared with last week, or 3.5%, lower than the domestic market 3363 yuan / ton, the price difference narrowed 511 yuan / ton last week.

The growth prospects of the world's major economies are not optimistic, and the outlook for cotton consumption is bleak.

In July, the euro area Manufacturing Purchasing Managers' index (PMI) dropped to 44, the lowest level in 37 months. Most of the member countries' PMI was below the 50 line. The ECB's recent report lowered the economic growth forecast for the next two years and raised the unemployment rate at the same time.

The Fed's Conference on interest rates described the US economy as "slowing down" rather than a "moderate expansion".

Basically, the recent drought in the United States and the lack of rain in India have a negative effect on the growth of new cotton. However, the monthly report of the US Department of agriculture (USDA) in August raised the cotton production in the new year. The end of last year's inventory of cotton in the new year also increased substantially compared with the previous period, reversing the anticipation of the early market's unfavorable cotton production.

In summary, it is expected that the international cotton price will be running more pressure in recent years, showing a weak trend of oscillation.