Weak Spot Market In China, Zheng Cotton Futures Rebounded Slightly

Xinjiang new cotton is growing well and has entered the stage of hitting and closing. If the weather is normal in 7-8, cotton enterprises are expected to start buying new cotton at the end of August.

The growth of cotton in the mainland is more obvious than that in the north and south. The Yangtze River Basin is affected by the rainy season. Cotton is locally affected and growing unevenly. Most cotton areas in the the Yellow River River Basin are relatively dry. The overall growth of cotton in Henan, Hebei and Shandong is good, but the drought is not conducive to the seedlings.

The main message in this week is that the cotton mill is out of stock. The news shows that the relevant departments will arrange the reserve cotton rotation through the national cotton trading market in the form of public bidding in 7 and August. The number of rounds will be temporarily suspended by 1 million tons, and the sale will be stopped after the new year begins in September. The specific quantity and price arrangement is: the domestic cotton in 2011 will be 330 thousand tons, the bid price will be set up (the standard grade 3128B, the same below) is 13200 yuan / ton, the domestic cotton in 2012 will be 470 thousand tons, the bid price will be 14200 yuan / ton, the import cotton in 2012 will be 200 thousand tons, and the bid price will be 15500 yuan / ton.

The rotation will be arranged separately according to the actual paction situation and the late market operation, and will be selected in the new cotton concentrates during the listing period. The maximum number of rounds will not exceed 40% of the total number of rounds, and the price will follow the market.

This time

The launch will start in early July, and the specific trading rules will be announced by the national cotton trading market in recent days.

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Judging from the bid price of cotton in 2011, the bid price is lower than 1000 yuan / ton in 2012. In 2011, the 330 thousand tons of cotton had obvious price advantage, while the 470 thousand tons price in 2012 was worse than expected. It was difficult to conclude the paction. In 2012, the price of 200 thousand tons of imported cotton was high, but the quality was guaranteed, and the market was not digested by the market.

Put cotton reserves on the market

Domestic resources are abundant, and the supply of cotton reserves has increased the supply of low grade cotton. The 200 thousand tons of imported cotton will have a certain impact on the high-grade cotton market. The cotton reserves will also have a positive side to the market. At present, the price of cotton 3128B cotton in major domestic areas is roughly 13000-13200 yuan / ton. In Hebei, Shandong, Jiangsu and other places, the 3128B grade Xinjiang hand picked cotton wool price is 13300-13500 yuan / ton, the reserve cotton auction price is higher than the market expectation, and is higher than the spot price, which has fulfilled the government's commitment to "reserve cotton not to suppress the market", which greatly relieved the panic of the previous market, and the futures price of zhengmian has rebounded steadily.

The spot market is not good for price rise. In July, 3 China's cotton price index 3128B reported 13238 points on Friday, 53 points lower than that of last Friday, lower price of yarn, lower orders of high yarn and combed yarn, more orders for textile enterprises, lower price of stocks with higher inventory, lower inventory, overall operating rate declined slightly, and cotton textile enterprises were about to launch, textile enterprises had slowed down their enquiries and delivery significantly, even if the procurement contracts signed earlier were also postponed, so as to maintain low raw material inventory to avoid the risk of price fluctuation.