Ruida Futures: Zheng Cotton Short Term Weakness Does Not Change

Domestic trend: 11 days

1505 contract oscillation fell, opening at 13085 yuan / ton, closing at 13065 yuan / ton, compared with the previous day settlement price fell 25 yuan / ton, turnover increased slightly.

Reduce 10628 hands to 202760 hands, the main shift warehouse 1509 contract.

External trend: ICE cotton fell on Tuesday, as the US agricultural report shows that global inventories are increasing, and China is forecasting.

Lower.

The most active ICE5 month cotton fell 1.38 cents, or 2.2 files.

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Entering the March, the cotton market in the the Yellow River river valley was cold and chilly, and the price climbed slowly.

The main bodies of the market are negative and pessimistic.

9, Shandong, Dezhou, Binzhou, Dongying and other 400 enterprises seed cotton purchase price 2.80-3.15 yuan / Jin, a slight increase of 0.02 yuan / Jin compared with last week.

According to the enterprise, at present, 400 enterprises in Shandong province started 35-40, which fell by more than 69% compared with 130 before the Spring Festival holiday.

Talking about the reasons, a market source in Dezhou said: first, there is not much quantity of seed cotton after the festival. Two, the spot digestion that was processed years ago was slow, and it was difficult for enterprises to withdraw funds.

The market prices in Hebei, Henan and Tianjin are similar to those in Shandong.

As of 9 days, the rate of operation of the 400 type enterprises was only about 20% of that before the Spring Festival, while the 200 type enterprises were very few.

A cotton grower in Cangzhou, Hebei, said that although the direct subsidy scheme of Hebei, Shandong and Henan has been approved, the market is expected to be subsidized in April, but the allowance is only a drop in the bucket for cotton farmers.

On the spot, the price of 3128 grade cotton production in most of the Hebei ginning plant in Hebei was 13000-13200 yuan / ton and 12600-12700 yuan per ton at grade 4128. It was 200 yuan / ton higher than before the Spring Festival.

However, some ginning plants worry that spot prices will turn downward after a small increase.

First, it is reported that the Xinjiang regiment has cut down the sale of lint and the price of machine picked cotton has been reduced by 300 yuan / ton on the basis of 13500 yuan / ton, and there are still preferential purchases in large quantities. Two, the price of real cotton in Shandong and Henan has returned to the level before the Spring Festival, of which the 3128 level of Shandong Binzhou is 12900 yuan / ton, down 200 yuan / ton compared with last week; three is the decline of zhengmian futures, as of Friday (6), the CF1505 contract of zhengmian main force has been collected 13160 yuan / ton, which is down by 115 yuan / ton before the Spring Festival (February 13th), which is not conducive to the spot market of lint.

Cottonseed market down.

On the 9 day, the prices of cottonseeds from Shandong Xiajin and Hebei Dongguang were 1.17 yuan / Jin, 1.14 yuan / Jin respectively, down 0.02 yuan / Jin compared with last week.

It is understood that after the Spring Festival, the Yellow River River Basin cottonseed market presents "first up and then down" characteristics.

Recently, the main reason for the decline of cottonseed is that the downstream cottonseed oil and cottonseed meal are being dragged down by the external market.

The head of a pressing oil factory said that not only the cottonseed in the mainland dropped, but also cotton seeds in Akesu, Kashi and other places in Xinjiang dropped slightly, and the 9 day pick-up price was about 0.81 yuan / kg, down by 0.01-0.02 yuan / Jin, and the enthusiasm of some mainland oil extraction factories in Xinjiang also declined.