Reserve Delivery Can Not Control Cotton Price &Nbsp Or Follow Up Policy.

Analysts believe that

Textile companies and speculative funds have been boosted, plus news that India has postponed the export of cotton to mid October and the bad weather in the Chinese market. The market is still positive about the tight demand in Asia. The US cotton futures rose sharply on the 27 day, reaching a 15 year high.

The ICE cotton contract closed up 4 cents in December, hitting the limit of the price of $1.0393 / pound.

Basic news, the US Department of agriculture (USDA) reported in the weekly crop growth report that by the week September 26th, the US cotton growth rate was 55%, 58% last week and 49% in the same period in 2009.

Due to reduced inventories and poor volume of new arrivals, industry officials in India say India will postpone the export of cotton for two weeks to mid October. Officials of the Ministry of agriculture and textiles will convene this week to decide on the number of exports 2010/11 and when to export.

The Pakistan textile industry is deeply worried about the news.

The international market is generally optimistic about the rigid demand in the late Asian market.

27 days nationwide

The sale of national cotton reserves was sold in September 27th, and 30048 tons were sold. The total paction price was 21776 yuan / ton, up 5357 yuan from the previous day, and the 328 class paction price was 22374 yuan / ton, up 5549 yuan from the previous day.

The highest paction price was 24980 yuan / ton (net weight) on that day, with an average grade of 328, totaling 121 tons.

In the morning of 28, the price of domestic electronic disk opened sharply, and the contract continued to rise sharply in recent months.

Zheng cotton opened slightly lower on the 28 day in early trading and remained at a high level as of press release.

According to reporters, yesterday's domestic cotton seed purchase price fell slightly in some areas, but yesterday, cotton prices continue to shoot high prices and foreign cotton trading, driven by seed prices rose again.

Under the current policy ambiguity, the risk of acquiring enterprises continues to increase.

From the perspective of textile downstream enterprises, from 2010 to August, textile raw materials and labor costs rose sharply, while clothing prices dropped compared with the same period last year. Indeed, the profits of the early profitable textile enterprises continued to shrink, and the consumption of industrial chain conduction terminals was slower than that of L.

But according to the press, the market price of grey cloth and clothing has increased by about 30% compared with the previous period.

According to China Weather Network, before the national day, the cold air is more active, the temperature in Northeast China has declined, and some areas will also welcome the weather such as gale, rain and snow, frost and so on.

At the same time, rainfall is still concentrated in the southern part of the country, mainly concentrated in the southwest to the south of the Yangtze River. Local rainstorms are accompanied by short term severe convective weather.

Affected by the cold air eastward shift, the next three days, northern and Eastern Xinjiang, Western and northeast Inner Mongolia, Western Gansu and other places have 6~8 degrees of cooling, local temperature dropped 8~10 degrees.

Rainy and frosty weather will continue to postpone cotton picking progress.

From Zhengzhou cotton futures 27 days after the change in the structure of positions, long COFCO futures holdings of nearly 12 thousand hands, but Zhejiang Yongan, the earth and the new lake took over a lot, from the perspective of speculative capital, the market is still bullish attitude obvious.

To sum up, Zhai Naigang, an analyst, believes that the market is still under the support of resource shortage and speculative capital. It is expected that the pre holiday price will remain high, and the US cotton market is expected to challenge the 1995 historical high during the national day of China.

With the massive listing of new cotton in China, India's export market is clear and cotton prices are expected to adjust.

But looking at the new year's global output and inventory, the market has entered the era of high cotton prices, and there is little possibility of significant adjustment.

Following the trend is still the main idea of operation at present. We should pay attention to policy control and risk of escaping in the short term.