Strong Support For The Cotton Market Is Still Strong In The Future.

Cotton prices showed weak inside and outside strength, and internal and external spreads narrowed.

This week, Zheng cotton volume reduction, part of the long departure, the total position decreased by 34 thousand to 669 thousand hands, turnover increased 1 million 290 thousand to 5 million 62 thousand hands, but the price is still strong.

Weekly view, the weekly average line pattern has gradually changed to a multi head pattern. The current high price point on the previous price station has been stable since this week, and the probability of continuing along the moving average along the moving average is larger.

As for the daily line, the average price of the fixed price line is long.

Gold fork, KDJ upward, indicators are more.

Zheng cotton is still strong in technology.

On June 27th -7 1, the standard sale price of reserve cotton was 12475 yuan / ton, up 150 yuan / ton compared with 12325 yuan / ton base price in June 20-24.

As of June 24th, the total number of state-owned cotton stores was 979 thousand tons, with a turnover of 959 thousand tons, with a turnover rate of 97.91%.

Among them, 302 thousand tons of imported cotton wheels were exported, and 100% of them were traded. There was no imported cotton in the national cotton stores. The total output of domestic cotton was 678 thousand tons, and the turnover rate was 657 thousand tons, with a turnover rate of 96.98%.

The cotton market has strong support and will continue to be strong in the future.

1, the strong performance of India and Pakistan and the US cotton market has led to a rise in the prices of imported cotton and imported yarn, which is beneficial to the domestic market.

India and Pakistan reduced production factors, cotton supply was tight, and weather seriously affected cotton cultivation, which was not conducive to cotton production next year. India and Pakistan began importing Australian cotton and West African cotton, and the demand for cotton was still hard to satisfy.

and

Prices soared.

US cotton signed and shipped last week, a substantial increase over the previous week, an increase of 59% over the previous four weeks average.

2, Britain's withdrawal from Europe has led to the depreciation of the renminbi, which is conducive to the export of domestic cotton yarn and grey cloth, and the import of cotton yarn is unfavorable to the domestic market.

3, the daily output of China's cotton reserves has remained 20 thousand tons, which is difficult to increase. The average price has risen to 12300 yuan / ton. Basically, the Xinjiang cotton has been sold out, and the number of state-owned cotton stores in the territory is relatively small.

4, internal and external yarn prices rose simultaneously, and the outer yarn increased faster than cotton, especially for the C32S yarn.

5, the demand for new cotton with better color grade is less stable than that of cotton processing plants.

Because the new cotton has the advantage of color level, the new cotton can only be used for making bleached yarns and cotton, so the demand is more stable.

Cotton buyers are reluctant to sell in early June, and there is no financial pressure on processing plants.

Operation: we should continue to hold more and guard against changes in policy.