The Potential For Cotton Reserves To Be Put Into The Cotton Market In The Near Future Should Be Wait-And-See.

Electronic matching:

In August 29th, the opening of the contracts in the market matched with each other, and within a narrow range, the market ended up.

Whole country

(19540,95.00,0.49%) the trading volume of cotton and cotton trading in the trading market was 12520 tons, a decrease of 1100 tons compared with the previous day, an increase of 560 tons in orders and an aggregate purchase of 125220 tons.

Two. Futures market

1. ICE: cotton futures rose on Wednesday, and the market awaiting reports of tropical storm Isaac damage in the Mexico Gulf Coast.

Index cotton contract in December rose 1.03 cents, 76.65 cents per pound.

2. Zhengzhou:

The CF1301 contract was opened, and the early trading was backed up by the short back and long buying. The price adjustment in the afternoon ended in the bull market and the rebate in the end of the day was rebounded under the effect of short back compensation, and the daily line formed a positive line.

The CF1301 contract concluded 137376 hands on the day, 3750 on the day, and 260724 at the end of the contract; the CF1305 contract day was 15146 hands, and the day was reduced by 2554, and the final position was 81926 hands.

Three. Spot market:

Wei Qiao offer: three level: 19300 429:18500 (temporary suspension)

CC INDEX328:18480 yuan / ton, up 24 yuan.

Others: the average price of grade 527 cotton to plant is 16151 yuan / ton, up 13 yuan.

It is reported that in order to stabilize the market and ensure the normal operation of the textile industry, some cotton reserves will be put in a small amount in the near future to ensure the demand for cotton for textile enterprises.

It is also learnt that with the approaching of the acquisition of new cotton, preparations for cotton enterprises are basically ready. It is estimated that the opening time will be in mid September.

Cotton side, the peripheral oil market fell, the downward pressure on cotton oil prices increased; soybean meal (4262,35.00,0.83%) market is strong, cottonseed meal prices are stable; cotton staple market is still sluggish; cotton shell prices steady rise.

Downstream, the whole cotton yarn market overall maintained a weak consolidation pattern, but downstream demand is still insufficient, large single paction less.

Four, macro environment: as of August 28th, ICE cotton inventory was 21106 packages.

The US stock market closed up after the GDP data announcement, and investors waited for Bernanke to speak.

The central bank has launched a 28 day reverse buy back inquiry for the first time.

The CF1301 contract picked up the pickup line, and the daily line was supported by the 20 day moving average. However, it ended near the 10 day moving average, but the technical side stabilized but did not confirm that the fall came to an end. The hourly chart formed a trend of rising and falling, and the short-term pattern was more partial. However, there was still a strong pressure in the early stage of the price test, and the key position still had strong pressure. There was the possibility of the continuation of the rebound trend in the future market, and the pressure on the 19650 front line was concerned.

Operation suggestion: wait and see.

Six, trend test: 1301 fall (neutral), wait and see

Arbitrage operation: buy January empty May, wait and see