If domestic cotton consumption also late before they get better, so domestic large commercial inventory, and countries will be to MianJia inventory storage tremendous pressure.

Although American cotton recently appeared the agent a comeback, but domestic zheng cotton situation is not satisfactory. Zheng cotton at present, JinKouMian impact end face collection and bad, consumption season there can take start uncertainty, therefore, short-term zheng cotton or will continue the weak ground movements. By March 19, the domestic cotton 2938650 tons of cumulative collection clinch a deal. The cotton from collection began on 1 September 2011, to the end of march this year, is currently only the remaining 10 working days. According to recent average daily collection of about 20000 tons cotton calculation, to the end of march in the reserves will be 3.15 million-3.2 million tons.

At present the spot market cotton consumption are not completely start, cotton by hand in store to complete enterprise capital flow. Now 2011 collection almost come to an end in 2012, cotton to September 2012 collection to start, during the period would certainly make less MianJia neutral in a layer of protection policy, therefore, China's recent cotton level 328 index dropped a continued phenomenon.

The new annual collection policy terms, although collection from price 19800 yuan/ton increase for 20400 yuan/ton, and collection level also have been relaxed, in the long run, the state raised MianJia bottom intentions clear, in the short term, though, only for the 2012 collection showed, that means that zheng cotton 1211 and the after New Year contract is the object of protection collection policies. So, with the 2011 cotton the end of the collection, the cash MianJia or will again go weak.

Source "the Chinese textile nets"

Edit: Emma