On Tuesday, the rise of cotton in part by the surrounding market recipients rising trade and investors drive buying, but cotton sluggish demand could crimp the future days of gains. The intercontinental exchange (ICE) index December cotton period about 0.51 cents higher at $1.0015 a pound.
Zheng cotton 1205 contract today continue to fall. Low open in 20590, 20615, 20470, the highest lowest closed at 20485, is on the day down 115 points (0.56%). Cotton index, open reduction warehouse 658 hand, volume for 90000 more hands.
The spot market, on September 28 Chinese cotton price index (328) for 19993 yuan/ton, down nine yuan/ton. September 27, imported cotton price index (FCIndex S) to 119.82 cents per lb, down 1.99 cents. Discount 1% tariff 19494 yuan/ton, fell 320 yuan/ton; Fold slippery prospective tax 19947 yuan/ton, fell 317 yuan/ton.
2011 annual national meteorological condition overall is appropriate, the cotton growth progress is normal, late August start picking, sporadic into September in all started. By September 15, 2011, the national progress for picking 11%. Cotton prices by sales, JiaoShou seed cotton price influence malaise lower than the same period last year, September JiaoShou cotton farmers first half the average price data 7.97 yuan/kg. Cotton farmers, less JiaoShou contract-signing process, which ended sept. 15,, the total amount JiaoShou accounted for only about 1.6% of production. Expected 2011 national cotton covers an area of 80.18 million mu, compared with diameter of 4.1%. If the weather is normal, expected later this year the national output will reach 7.38 million tons, a July forecast 100000 tons, the reduction of the number with diameter comparison, are up by 10.9%. The new annual global and domestic cotton supply and demand will keep supply exceeds demand, so MianJia rise probability is low. Especially in the global economic recovery is not optimistic case, cotton consumption or will continue under the background of down.
From observing the disk, zheng cotton 1205 low open today, plate price trend shock slump, the position has increased, clinch a deal the continue to slump. Cotton recently, after falling downstream demand has not restored, short term rally possibility sign is not high. The whole, cotton will still in the long process of the agent. At present the operation Suggestions continued to hold short.
The above statement is only for reference, not as market participants are entering the market transaction basis. Futures have risk, investment must be cautious.
Source "the Chinese textile nets"
Author: east Asia editor: Emma XuZhou futures