Domestic Cotton Prices Flaunt Or Just "Flash In The Pan"

< p > < a href= "http://www.91se91.com" > international cotton price < /a > continued decline < /p >

< p > March 26th, cotton futures in Zhengzhou commodity exchange led domestic commodities, and the main 1309 contract closed at 20275 yuan per ton, up 135 yuan from the previous day's settlement price, or 0.67%.

Domestic cotton futures tend to be more volatile in recent years, while international cotton prices turn downward.

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In March 25th, the P cotton contract in May declined for the fourth consecutive trading day, the longest decline in 6 months in March 25th.

On the same day, ICE's most active May cotton futures contract closed at 86.59 cents a pound, or 0.8%.

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"P," Shanghai futures analyst, surprised to receive an interview with the international finance daily, said: "the international cotton price is still the normal range of callbacks."

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< p > before the recent drop in international cotton prices, cotton prices were increased by about 20% by capital push. A portion of the previously profitable funds closed up a lot of profits, resulting in a decline of < a href= "http://www.91se91.com/news/index_c.asp" > international cotton price < /a >.

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< p > in addition, the increase of new cotton planting area is expected to be strengthened, and the market supply is expected to be more abundant, and the international cotton price will also be suppressed.

According to the US forecast agency Informa, the new cotton planting area in the new year is 10 million 367 thousand acres, higher than the estimated 9 million 10 thousand acres of the American Cotton Association (NCC).

In March, the US Department of agriculture (USDA) released a supply and demand report in March, indicating that the estimated cotton acreage in the US is estimated at 12 million 320 thousand acres.

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< p > in addition, a report released by the US Department of agriculture showed that in the week March 14th, the net sales of land cotton in the US 2012/2013 market decreased by 39% over the previous week, down 31% from the 4 week average, which is also bad for the cotton market.

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< p > domestic cotton price: collection, storage, market, < /p >

< p > and domestic cotton futures prices are affected by the government's purchasing and storage policy, and the trend is strong.

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< p > from a fundamental point of view, domestic cotton planting area will be reduced.

According to the China Cotton Association survey, in 2013, domestic cotton planting area is expected to decline by 6.8% to 68 million 180 thousand mu, the first time in ten years, it has fallen below 70 million mu.

Among them, the most obvious decline in the the Yellow River River Basin, especially in Henan, has changed from cotton producing provinces to small cotton producing provinces.

See thunder thunder pointed out that the domestic cotton market seriously oversupply situation will be eased.

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< p > in addition, the shock of Zheng cotton futures is strong, which is mainly affected by the news of the continued purchase and storage in the next year.

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< p > this Friday (March 29th) is the last day of cotton storage and storage in 2012/2013.

Jinshi futures analyst Yu Lijuan pointed out that only 3 days from the end of the state's purchase and storage, some of the cotton enterprises that had not stopped working on the processing intensified to put all qualified lint into storage before the deadline.

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< p > this year, the state has implemented a policy of regulation and control of open storage and large-scale storage of cotton.

As of March 25th, the total number of national storage and storage was over 6 million 450 thousand tons.

According to China cotton information network data, the domestic cotton output this year is 7 million 470 thousand tons, that is to say, the storage capacity has reached 86% of the total output.

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< p > March 26th, on the two five session of the China Cotton Association, Li Yan, deputy director of the national development and Reform Commission, introduced the policy of open storage and storage to meet the needs of various departments, and in accordance with the current situation and the requirements of Document No. 1, so as to maintain the superiority of the cotton producing area in the basic stability, stabilize market expectations and textile demand, and the specific price will be announced to the public in the near future.

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< p > market is generally expected that the next year's purchase or storage price will be maintained at around 20400 yuan per ton, and the number of storage and purchase will continue to be open, but the purchase and storage will be double track operation, and the reserve cotton resources will not be allowed to circulate.

By the next year to continue to buy and store news to boost domestic cotton prices trend stronger.

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< p > continued strength is also seen in demand < /p >

< p > the rise of domestic cotton prices is also related to the rebound in demand.

An grain futures believe that the demand for high-grade cotton is increasing in recent years, but the overall pressure of textile enterprises is still relatively large. The downstream cotton yarn market is taking a low volume, and the cotton mill is mainly based on quantity, which is difficult to raise prices.

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< p > see thunder also points out that textile enterprises demand for high-grade lint in recent years, but in order to ensure market supply, the reserve cotton has been partly put into the market. After the end of March, it is expected to continue to expand the quantity to meet the needs of textile enterprises.

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< p > from the perspective of downstream demand, we can see that the commercial stocks of cotton are relatively low, and the new cotton market is basically stored and stored. Later manufacturers will have to bid for cotton reserves.

But overall, textile manufacturers are still cautious about purchasing.

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< p > data show that in February this year, China's textile and apparel exports amounted to US $16 billion 400 million, up 69% from the same period last year, far exceeding market expectations.

The recovery of the textile industry is accelerating, which is undoubtedly good for cotton prices.

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< p > Yu Lijuan also pointed out that more reserves of cotton will enter the circulation market, which not only increases the market supply, but also brings sales pressure to the cotton imports.

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< p > future a href= "http://www.91se91.com" > domestic cotton price < /a > indirectly affected by the international market. Analysts pointed out that if the US Department of agriculture's cotton planting intention survey results do not show a larger decline this week, it will be difficult for the international cotton price to stabilize and pick up, and the international cotton price is expected to continue to fall, which will drag domestic cotton prices.

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< p > Yu Lijuan believes that in the short term, Zheng cotton will continue to shake up the market. The end of the purchase and storage will have a pressing effect on Zheng cotton. It is suggested that investors should sell short on high prices, and the main operations are mainly empty ones.

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< p > food futures forecast that if the purchase and storage price is not up to market expectations, then there will be obvious top pressure on zhengmian 1401 contract, and the future cotton price will be concussed at the 20400 yuan storage price per ton and the reserve price of 19000 yuan per ton.

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