Cotton Fluctuates Greatly. We Suggest Continuing To Wait And See.

Cotton futures on the ICE intercontinental market closed for nearly three weeks on Monday. Further speculation is likely to follow in the wake of speculative buying and possibly consumer buying.

ICE CTK2 cotton contract CTK2 rose 1.28 cents, or 1.43%, at 90.91 cents a pound.

Today, Zheng cotton 1209 contracts have gone down.

Opened at 21235, the highest 21385, the lowest 21180, closed at 21265, compared with the previous trading day fell 25 yuan / ton or 0.12%.

Cotton index decreased by 606 days in hand, with a turnover of more than 190 thousand.

In the spot market, in March 28th, China's cotton price index (328) was 19508 yuan / ton, down 9 yuan / ton.

In March 28th, the imported cotton price index (FCIndex S) was 107.59 cents / pound, up 0.83 cents from yesterday, 1% yuan 17243 yuan / ton, and 17719 yuan / ton of discount tax.

At present, China has entered the new year of cotton sowing season.

As cotton prices fell in 2011, domestic cotton production income dropped to 491.5 yuan / mu, down 59% compared with the same period last year.

Therefore, despite the introduction of a new annual storage policy, the domestic cotton planting area will continue to decline.

According to the Ministry of agriculture's intentions survey from the end of February to the beginning of March, the intention of cotton planting in the whole country decreased by 3 million 600 thousand mu in 2012, compared with 5% in the same period last year.

The cotton association of China recently predicted that the decline of cotton planting area in the new year is more than 16%.

However, the sharp fall in the storage area of domestic cotton in the new year will still depend on two factors.

The first is the large number of domestic purchasing and storage policies and quota issuance policies.

As of this week 2011 cotton temporary storage and storage totaled more than 3 million tons.

It is precisely because of the state reserve collection and storage, so domestic cotton prices can stabilize near 20000, but the price difference between domestic and foreign cotton has expanded to a historical high.

According to the China reserve cotton store, the development and Reform Commission will have a rhythmic export quota in early April.

At present, more than one million tons of imported cotton have been piled up in ports. Once the import quotas are issued, a large number of selling will be triggered, and domestic cotton prices will be quite impacted.

Secondly, the domestic downstream consumption is weak.

At present, the cotton yarn market is in a slump, cotton yarn profits continue to decline, and the cotton yarn inventory is high. Basically, the enterprise maintains the lowest operating rate, guarantees production, and the purchasing inventory is basically zero.

And the agricultural development bank advanced to the end of April, double knot zero, by the loan capital withdrawal, the enterprise saves the stock, sells positively.

Judging from the trend of the disk, today, Zheng cotton 1209 opened high, the opening was once dropped, the lowest to 21180, followed by a sharp rise, the highest to 21385, second quarter trading time diving, position decreased.

Low consumption is still the main reason for the weakening of cotton prices, while the lower prices are also providing support for cotton prices.

It is recommended that we continue to wait and see.