November 28, 2013 Launch Of National Cotton Reserves

< p > 27, the national a href= "//www.sjfzxm.com/news/index_s.asp" > cotton > /a > trading market announcement, from November 28th, through the national cotton trading market's reserve cotton auction system, sold out part of the national reserve cotton.

State reserve cotton throwing and storage officially landed.

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< p > by the expected impact of the national cotton store < a href= "//www.sjfzxm.com/news/index_q.asp" > dumping reserve < /a >, the domestic cotton spot is still weak, and the amount of money entering the market is not large.

27, China's cotton index 328 cotton reported 19640 points, down 5 points.

The M cotton import price index rose 62 points to 89.55 cents / pound compared with the previous trading day.

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< p > reporter learned from the China Cotton Association that the picking of cotton seeds in the mainland has basically ended, but the cotton purchase market is still dull.

Analysts pointed out that due to slowing demand and increased inventory, the market oversupply increased concerns, ICE cotton prices in recent years has dropped to nine and a half months to a new low.

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< p > 013, the basic price of new cotton purchase and storage is 20400 yuan / ton, which is higher than cotton futures and spot prices to varying degrees.

Judging from the market performance after the implementation of the policy of purchasing and storage this year, Zheng cotton did not rise or fall, which is enough to explain that the role of purchasing and storage policy for cotton prices is weakening.

Once there is a low price reserve or other negative factors, cotton prices will naturally come down.

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< p > Wang Shufei believes that the "excess supply and demand + market reform" in cotton city will decide the future trend of cotton prices, and after the cotton market is gradually liberalized, the space and role of market adjustment of cotton prices will be further strengthened. At that time, the supply and demand surplus pattern of cotton market will lead to a new fall in cotton prices. It is estimated that cotton prices will run normally between 17000 and 18000 yuan per ton next year.

Therefore, for investors, they can sell short positions on the forward contracts and sell short positions, while those holding cotton spot positions can sell them at reasonable prices.

In addition, under the role of marketization, the huge price difference between inside and outside cotton will come back sooner or later. Traders can also choose to buy the cross market arbitrage investment of cotton producing countries.

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< p > the difference between cotton price at home and abroad is still large, and the downstream a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > the demand for enterprises is still low, the inventory of products is large, and the willingness of cotton enterprises to replenish banks is not strong.

There will be a large number of high-quality cotton storage in the market after the sale of national cotton reserves. Although there is little difference between the price of cotton and the price of main contract, the excess supply will also bring pressure on cotton prices.

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