Cotton Market: Cotton Prices Stabilized

The 1601 month contract of futures futures opened lower on Thursday, rising 300 yuan, closing at 12910 yuan, closing about 226 thousand hands and holding about 218 thousand hands.

On the spot side, China's cotton price index 3128B cotton index 13212 points, down 6 points, and the spot market is weak. Recently, the sharp decline of the stock market and the Zheng cotton futures market has a negative impact on the market, which once caused the market to panic, and the textile enterprises cautiously purchased. But generally speaking, it did not see a great change in the fundamentals of cotton itself. The supply of cotton was about to be put in, the supply increased and the demand was weak, and the fundamentals of short-term disadvantaged will be maintained. But the higher price of the reserve cotton has also given some support to the market, and it is also the main reference index for the processing enterprises in the textile industry.

Stocks and peripheral commodities rose on Thursday, Zheng Mian

Also follow the high, low back after the rebound is also strong, prices stabilized, the trend is expected to continue to rise slightly, the operation can be involved in the 1601 month contract more.

ICE cotton futures rebounded on Thursday and the most active December contract rose 0.56 cents to 65.68 cents.

The US Department of agriculture's report on export sales released on Thursday showed that in July 2 week, the US 2014/15 year.

A sharp reduction in export shipments of 211100 bags, a decrease of 8% over the previous week, a sharp decrease in weekly sales volume and shipments, and no continued pressure on Thursday cotton prices, after a sharp fall in five consecutive days, prices rebounded, one price fell to the original adjustment of the relatively low level, technical adjustment rebounded; two, the market gradually digested the impact of the Greek crisis, China's stock market rose, commodity prices rose more, and investors expect the US Department of agriculture to increase export forecasts and reduce the carry out inventory estimate, ICE cotton prices lower and higher, a slight increase, it is expected that the potential to continue deep callbacks may not be strong, will stabilize and continue to rebound slightly. Net sales of export 30500 packs

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He Xiaosi, an information manager of China cotton textile information network, thinks that the national cotton reserves will have a certain impact on the whole market, but there may not be much turnover.

He Xiaosi pointed out that, first of all, from the detailed rules of the state reserve cotton, the quality of the test was only checked, and the weight was sold according to the weight before entering the warehouse.

"It has been four or five years since the warehouses were put into storage in 2011, and the weight has been reduced a lot."

Second, the price is higher.

Taking domestic cotton in 2011 as an example, the bid price is 13200 yuan / ton, and only 13500 yuan per ton of cotton is pported to the mainland in Xinjiang.

Finally, the quality is doubtful.

"The cotton that has been put in the warehouse for several years is now being sold and the quality will definitely be affected. This is also the most worrying problem for the textile enterprises."

He Xiaosi said that compared with domestic cotton, the 200 thousand tons of imported cotton produced in the 2012 year may be favored by textile enterprises. "The quality of imported cotton is better than that of domestic cotton, so the 200 thousand ton imported cotton should not be a big problem."

The manager of the cotton Department of China International Investment and Trade Co., Ltd., Nanjing, also pointed out that the price of the national reserve cotton is higher than that of the current round, and there is also some doubt about the quality of the cotton.

"The quality inspection of cotton outgoing is still the basic factor that affects the purchase of textile enterprises."

Feng Jia said.