Early Comment On Cotton Market In November 8, 2012

Overnight, the 7 day, as the ICE futures contract delivery notice December approaching, the index fund began large-scale conversion, downward pressure on cotton prices, plus peripheries.

General weakness led to the December contract settlement price breaking 70 cents, the lowest since July 25th.

At present, the market is expected to report USDA supply and demand report will also reduce the global cotton consumption level, supply pressure is difficult to alleviate, cotton prices will continue to remain weak.

In the international market, except for Brazil cotton quotations increased by 0.5 cents yesterday, the quotations of other cotton producing countries in China generally declined, while the United States cotton fell 0.25 cents, while West African cotton and India cotton fell 0.5 cents.

From the market situation, recently, with the price of Cotton falling repeatedly, low quality and low quality cotton can be obtained.

Factory favored, textile factory inquiry is more active, the purchase quantity is not much, but keep with the purchase.

However, at present, the new cotton market in the northern hemisphere is coming into season, coupled with the high inventory in the world and the obvious pressure on China's stock market to the market.

Domestic market, 7, domestic cotton market continues to run smoothly.

The market support function of the storage and purchase measures will help stabilize the price of the domestic cotton spot market. However, the domestic and foreign cotton prices remain high. The export of China is higher than that of the domestic market, but the growth rate is still not optimistic. In November, the new cotton market in the United States and India will be listed in large quantities. The huge price difference may push the textile enterprises to import the cheap international cotton.

State storage dynamics, November 7th National Cotton temporary storage of 64460 tons, as of the same day, 2012 cotton temporary storage and storage pactions totaled 2128430 tons, of which 636910 tons in the mainland and 1491520 tons in Xinjiang.

Spot quotation, 7 days, C/A cotton 86.85 (cents / pound) in the US, discount general trade port delivery price 14768 yuan / ton (calculated by sliding tax); Australia cotton 92.35, discount general trade port delivery price 15455 yuan / ton; Uzbekistan cotton 89.85, discount general trade port delivery price 15137 yuan / ton; West Africa cotton 83.85, discount general trade port delivery price 14411 yuan / ton; India cotton 82.85, discount general trade port delivery price 14295 yuan / ton.

The national cotton price A index was 19656 yuan / ton, up 3 yuan; the B index was 18801 yuan, up 3 yuan.

Market analysis, the current collection and storage work continues to provide support for the market, as of November 7th, the cumulative turnover has exceeded 2 million tons, with the entry and storage of high-grade cotton, the trend of cotton prices in the later period depends mainly on consumption and imports of cotton, and cotton prices will steadily return to industry demand.

US cotton fatigue shows 70 shaky parts.

Fluctuations in the 19000-20000 interval, the 01 contract shock axis selection direction, 05 contract pressure 19290, support 19000.

Operation, 01 wait-and-see, 05 short line 19290-19000.