Spot Is Weak &Nbsp; Zheng Cotton Is Still Hibernating.

Recently, under the influence of domestic demand and weak demand,

The economic situation is uncertain.

The EU summit held in December 9th has achieved some results, but Moodie warned that the EU still has downgrading risks, and the European debt problem will continue to ferment, which will continue to affect the trend of commodity futures market.

At the same time, the US economy is also in a tumble. The employment data in the early stage are better for the market, but there is still much uncertainty about whether the job market can continue to improve. The economic outlook is still uncertain.

From the domestic situation, the economic growth rate has fallen back to reality. Steady growth indicates that economic restructuring has been put on the agenda, monetary policy has become steady, and the tight liquidity of the textile industry is expected to ease, and the industrial pformation is imminent.

Demand has not recovered significantly.

At present, the spot price of cotton has stabilized, yarn prices have stabilized, confidence in the market has been restored, and market enquiries have increased.

However, demand did not recover significantly, and the purchasing strategy of the cotton mill did not change.

The main reason for the cautious purchase of cotton mill is: the price fluctuation of raw materials is not obvious, and there is no sign of improvement in downstream demand of textile market.

According to the survey, in November, domestic cotton inventory time was 33.66 days, an increase of 4.18 days from last month, the yarn stock time was 20.96 days, an increase of 0.34 days from last month, and grey fabric inventory for 17.96 days, an increase of 1.78 days from last month, indicating that demand is still weak.

At present, many textile enterprises reduce cotton consumption, and use polyester staple fiber and viscose staple fiber and other raw materials, but also greatly suppress cotton prices.

According to the US Department of agriculture forecast in December, China's cotton consumption decreased by 109 thousand tons to 9 million 798 thousand tons, indicating that China's cotton demand continued to be weak, while the European and American economic downturn, the domestic textile enterprises orders situation is difficult to improve, short-term demand is difficult to improve.

Recently, the Ministry of Finance adjusted the slip tax formula of imported cotton, and the import cost has been raised. This is a significant boost to the price of the imported cotton, and next year, the cotton planting intention has slipped.

Support for purchasing and storage policy is strengthened

Domestic purchasing and storage steadily carried out, and storage capacity remained stable.

As of December 19th, the actual storage and storage of cotton in 2011 amounted to 1 million 680 thousand tons, with an average daily turnover of about 50 thousand tons. At this rate, cotton storage and storage in late December will exceed 2 million tons.

As cotton prices stabilized and the Spring Festival approached, the cotton farmers who had been reluctant to sell began to sell at a price, and the enthusiasm for sale was significantly improved.

In recent days, the weather has cleared up, and the speed of enterprises' storage has accelerated. Although some enterprises have put cotton into futures and matching market, the enterprises of the state of Chu reserve still have a majority.

From a technical point of view, Zheng cotton has been pulling up sharply in recent years. The focus of the price has shifted upward and the upper edge of the oscillation interval has been raised.

In the case of stabilizing cotton prices by purchasing and storing policies, cotton prices remain variable in the future. Cotton demand is hard to pick up. Zheng cotton is hard to get out of the trend market and continues to have a narrow probability of oscillation.