Cotton Market Or Will Continue To Maintain Weak Shocks

In April 1st, the average purchase price of seed cotton in the mainland was 6.18 yuan / kg, and the purchase price of leather noodles was 27824 yuan / ton, down 0.15 yuan / Jin from last week, or 2.4%.

National Cotton (28245, -215.00, -0.76%) price B index fell 532 yuan / ton compared with last week, 30111 yuan / ton, or 1.7%.

The average selling price of Xinjiang grade lint is 30919 yuan / ton, down 143 yuan / ton compared with last week, or 0.5%.

Zhengmian 1109 contract declined 6.75% compared with last week.

Cotton spinning Market

In March 31st, the national development and Reform Commission and other departments issued the "2011 cotton temporary purchase and storage plan", decided to implement the temporary cotton purchase and storage system from September 1, 2011 to March 31, 2012.

The standard grade lint comes to the warehouse price 19800 yuan / ton (public weight), the cotton which receives and stores is 2011 year 400 type cotton enterprise production processing, and through the instrumented notarization inspection zigzag fine suede.

We believe that the plan will help stabilize cotton planting area, but it will not have a substantial impact on the current cotton supply and demand fundamentals.

In April 1st, the average price of pure cotton combed 32 yarns was 36800 yuan / ton, 1.6% lower than last week; the average price of 40 cotton yarn combed was 44270 yuan / ton, 1.23% lower than last week; the average price of polyester cotton 45 yarn was 30500 yuan / ton, which was 1.61% lower than last week; the average price of air jet spinning 10 yuan yarn was 25350 yuan / ton, which was lower than last week.

Recently, the price of cotton yarn and grey cloth has been dropping continuously. The yarn price of most varieties dropped by more than 3000 yuan / ton compared with the beginning of March. However, the difficulty of shipments has not been improved, the finished product inventory has continued to increase, and the start-up rate of enterprises has been seriously inadequate.

This week, on the one hand, due to the tight supply of resources, on the other hand, due to the weak demand in the lower reaches, resulting in fierce competition between the two sides, ICE futures continued the trend of the previous week.

From a technical point of view, the resistance of 200 cents above is large. If there is no good news, it is hard to break through.

The probability of continuation of the trend is greater.

This week, USDA released the US cotton planting intention report. The report showed that in 2011, the US cotton planting area was 76 million 340 thousand tons, an increase of 14.5% over the same period last year.

In addition, the latest US cotton export data released by USDA show that in the week ending March 24th, China's new contract volume for Chen cotton in the United States was 64 thousand and 800 tons, but the 37 thousand ton order contract was cancelled.

The main reasons are as follows: first, China's domestic area has been declining in recent years; two, textile sales are not smooth, and finished goods inventory is increasing gradually; three, India cotton and yarns will soon enter the international market.

The market will focus on the forecast of the global cotton production and marketing in April, and expect the USDA report to guide investors.

Outlook for the future

Early stage