September 4, 2012 Institutional Watch - Cotton Futures

Main points

1. Price Bulletin: domestic lint: 129 level 20422 yuan / ton; 229 level 19576 yuan / ton; 328 level 18666 yuan / ton; 428 grade 17791 yuan / ton.

Domestic textiles: polyester staple fiber 10390 yuan / ton; viscose staple fiber 15780 yuan / ton; C32S price 25630 yuan / ton.

2. domestic spot: domestic cotton spot prices tend to be stable, and downstream yarns have rebounded slightly.

Recently, the state will throw the store and auction the Xinjiang cotton as the main way to take up the bid. The recent high-grade lint is more tight, and the final paction price will be in line with the spot.

3. imported cotton: in September 3rd, the price of China's main port of imported cotton increased slightly, and the varieties generally rose 0.25-0.45 cents.

According to the cotton trader, the inquiry of textile enterprises' foreign cotton is still relatively cautious after the quota issued recently.

Due to the start of today's dumping and storage, and the quota of the additional issuance is processing trade, the foreign market purchase of cotton is relatively cautious, so the recent import of cotton imports tends to be dull.

4. cotton reserve pactions: in September 3rd, the number of cotton reserves was 35708.002 tons, the actual turnover was 21731.031 tons, and the turnover ratio was 60.85%. The average daily turnover reserve cotton was 3.06, the average length was 27.9, the weighted paction price was 18483 yuan / ton, the turnover rate was 328 yuan, the price was 18534 yuan / ton (weight), and the price of CC Index 328 was slightly lower than that of 17 yuan / ton on that day.

5.ICE cotton: September 3rd is labor day, and the US financial market is closed for a day.

Summary:

In the downturn of global economic growth and the difficult problem of global cotton demand in the long term, it is difficult to solve the three tier structure of global cotton prices.

The cotton processors, which meet the requirements of storage and storage, assume the role of cotton porters between China's cotton social circulation price and purchase and storage prices, and the driving force for them is money and money. When the price difference is not enough to cover the cost, the pport power will no longer exist.

In this sense, before the global cotton demand has obviously improved, the circulation price of cotton in China will close to 20400 of the purchase and storage price, but closing up does not mean that it can be achieved.

Continue to operate on the basis of the 20 day average line.

[Wanda futures] cotton cotton market, Zheng cotton continues to rise

On the 3 day, when the United States closed for labor day, Zheng cotton continued to rise under the impetus of the strong rise of external commodities. The main 1301 contract challenged 19700 yuan / ton pressure level.

On the 3 day, the government plans to sell 35708 tons of reserves, and actually clinch a deal of 21731 tons, with a turnover ratio of only 60.85%. The average price of the paction is 328B 18534 yuan / ton, which may constitute a pressure on Zheng cotton.

But on the first day, most textile enterprises are not well prepared, and the paction is not representative. China's 20400 yuan / ton storage will start in the new year, and the market funds will begin to pfer to the 1305 contract. The reduction of circulation resources will make Zheng cotton close to 20400 yuan / ton, and can not be pessimistic about the low turnover of dumping and storage, and continue to hold more than 1305 contracts, and short-term targets to 20000 yuan / ton line.

[MEIKO futures] policy role superposition Zheng cotton more than thinking operation

Overnight, September 3rd is labor day, and the US financial market is closed for a day.

News, September 3rd, China

The management company plans to sell 35708.002 tons of cotton for sale, and the actual turnover is 21731.031 tons, with a turnover ratio of 60.85%.

The average paction level is 3.06, the average length is 27.9, the average paction price is 18483 yuan / ton, and the 328 class paction price is 18534 yuan / ton (public weight), compared with the national cotton price B which represents the 328 grade cotton price in the mainland, the price index is 18685 yuan / ton 151 yuan / ton.

In the international market, in September 3rd, the quotation of imported cotton in China's main port was slightly higher, and the varieties of various varieties rose by 0.25-0.45 cents.

According to the cotton trader, the inquiry of textile enterprises' foreign cotton is still relatively cautious after the quota issued recently.

Due to the start of today's dumping and storage, and the quota of the additional issuance is processing trade, the foreign market purchase of cotton is relatively cautious, so the recent import of cotton imports tends to be dull.

The domestic market, the 3 day, yesterday began dumping work, some enterprises said they will actively participate in the auction, the average price of the paction close to the national cotton B index.

Recent market sentiment has eased slightly, domestic cotton spot prices continue to rise, but textile enterprises are very difficult to produce and operate. Therefore, domestic cotton prices are unlikely to rise substantially. In 2012, with the support of State purchasing and storage policy, cotton prices will not drop substantially, and cotton prices should be stabilized at around 20000 yuan / ton.

Spot quotation, September 3rd, the US C/A cotton quotation is 93.10 (cents / pound), the discount general trade port delivery price is 15777 yuan / ton (calculated by sliding tax), Australia cotton 98.35, discount general trade port delivery price 16498 yuan / ton; Uzbekistan cotton 94.40, discount general trade port delivery price 15952 yuan / ton; West Africa cotton 89.60, discount general trade port delivery price 15319 yuan / ton; India cotton 89.35, discount general trade port delivery price 15286 yuan / ton.

The national cotton price A index was 19589 yuan / ton, up 13 yuan; the B index was 18685 yuan, up 19 yuan.

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Market analysis, due to the recent domestic high cotton tension, because the auction price is expected to gradually return to the spot price, coupled with the new year's policy of no limit storage and storage, the market will not take the initiative to fall.

But the overall weakness of the textile industry limits the height of cotton prices.

The internal and external market trend is steady.

On the operation, we should pay more attention to the former high pressure and keep it alone.

[GF futures] recently placed Zheng cotton or bumped on the brun rail.

[market performance]

One week break of ICE

The Zhengzhou Mercantile Exchange cotton 1301 contract closed at 19660 yuan / ton, up 115 yuan / ton compared with the previous day.

Turnover increased slightly to 117848 hands, and holdings increased by 3908 to 253568.

[spot market]

Cotton spot quotation maintained a slight rebound, and the deal was dull.

The national cotton index is two yuan cotton, 19400 yuan, and the three grade cotton index price is 18551 yuan / ton, which rose 31 yuan / ton compared with the previous trading day.

[industry news]

In the global cotton supply and demand outlook released by the International Cotton Advisory Committee, it is estimated that in the 2011-2012 year, the global cotton supply will reach 35 million 500 thousand tons, an increase of 4% and a 4% increase in cotton planting area, reaching 3470 hectares.

[operation suggestion]

Walking in the upstream passageway, MACD is much more.

Today, the national reserve is close to or bumping near the top rail 19700 of the brun corridor, but there is no need to worry too much. It is recommended that we should hold more than one single unit and fall below the 19300 single stop loss reference.