September 6, 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: on the 5 day, the domestic spot price of cotton continues to rise, and the policy of cotton regulation and control by the state shows the care of the country on the cotton industry chain. It also basically clear the market pattern in the early new year.

3. imported cotton: in September 5th, the price of China's main port of imported cotton fell sharply, of which cotton, India cotton and Brazil cotton fell by more than 1.5 cents, while West African cotton fell 0.75 cents.

At present, the volume of market volume is obviously insufficient, and with the increase in the volume of national cotton storage, the outer cotton has already sat on the cold bench.

4. cotton reserve business: in September 5th, the China cotton reserve management company plans to sell 45202.18 tons of cotton reserves, and the actual turnover is 34247.06 tons, with a turnover rate of 75.76%.

On the same day, the average level of pactions was 3.06, the average length was 27.83, the weighted average paction price was 18669 yuan / ton, and the 328 grade cotton price was 18616 yuan / ton (public weight), which rose 29 yuan / ton compared with September 4th, which was lower than the national cotton price B index (CNCotton B) 18737 yuan / ton 121 yuan / ton.

5.ICE cotton: in September 5th, because of the upcoming monetary policy meeting of the European Central Bank, investors were more cautious, and commodity markets were mixed.

ICE cotton turnover declined, the December contract trend is weak, intraday 20 days of average support, eventually dropped 33 points.

Summary:

In the global economic downturn, global

The three tier structure of global cotton prices can hardly be changed if demand is difficult to solve in the long term.

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.

Operation continues on the basis of 20 days and 40 day average line to do more thinking. Recently, the United States cotton has little influence on Zheng cotton.

[GF futures] when Zheng storage was launched, Zheng cotton went up bumpy.

[market performance]

The US Intercontinental Exchange (ICE) cotton fell for second consecutive days on Wednesday. Due to poor demand and weak technology, cotton CTZ2 in December was down 0.33 cents at 75.35 cents, which was in the middle of 74.80-76.00 cents. Hurricane Isaac's damage to crops in Mississippi and Louisiana was limited, so that the market that rose to three months high 77.49 cents last week was easily reversed. The Zhengzhou commodity exchange cotton 1301 contract closed at 19585 yuan / ton, down 70 yuan / ton compared with the previous trading day.

Trading volume decreased slightly to 64882 hands, and positions decreased by 7862 to 246756.

[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 18616 yuan / ton, up 29 yuan / ton.

[industry news]

In September 4th, the number of cotton reserves was 40054.48 tons, and the actual turnover was 32894.97 tons, with a turnover ratio of 82.13%, an increase of 11163.95 tons compared with September 3rd.

[operation suggestion]

Under the influence of storage and storage,

After many days of ups and down, there was a bumpy ride on the Brunn rail track near 19700, but there was no need to worry too much. Under the 19500 support, we suggested that we should hold more than one, and then close to the 19300 stop.