Cotton Storage And Storage Near The End Of &Nbsp; Cotton Market Continues Weak

Recently, cotton enterprises have been working closely on lint, timely inspection and continuous storage. In March 12th -16 week, cotton storage and storage totaled 106500 tons, an increase of 14160 tons compared with last week, an increase of 15.3%. As of March 16th, the total volume of storage and purchase transactions in 2011 was 2907330 tons, of which 1288890 tons were traded in the mainland and 1618440 tons in Xinjiang (577760 tons of corps).

By mid March, the downstream textile market was hard to see signs of warming. Cotton yarn procurement in cotton weaving factories was maintained on demand, cotton yarn turnover remained light, and some spinning factories had limited production intentions, and cotton yarn prices continued to decline. Zheng cotton futures and matching market increased, and domestic spot market prices were stable under the support of purchasing and storage policy. In March 16th, 32 cotton combed yarn prices were quoted at 26380 yuan / ton, down 130 yuan / ton last week, or 0.5%, and the polyester staple price was 11350 yuan / ton, down 120 yuan / ton, or 1% lower than last week. The average price of cotton seed purchase in the mainland is 4.1 yuan / Jin, which is flat with last week. The average price of seed cotton purchase in Xinjiang is 4.25 yuan / Jin, unchanged from last week. The average selling price of the standard grade lint in the mainland is 19621 yuan / ton, down 9 yuan / ton compared with last week, or 0.05%; the average price of Xinjiang standard lint sale is 20212 yuan / ton, down 5 yuan / ton compared with last week, or 0.02%. Zhengzhou cotton futures contract settlement price of 20535 yuan / ton in May 2012, down 425 yuan / ton, or 2%, compared with last week; the average price of electronic matching May 2012 of the national cotton trading market was 20088 yuan / ton, down 356 yuan / ton, or 1.7%.

According to the national energy board data, the consumption of domestic light industry decreased by 3.85% compared with the same period last month, 1-2, compared with the same period last year. As for funds, up to March 11th, four large banks, including industry, agriculture, China and construction, increased by less than 20 billion yuan. The above data show that under the influence of external demand reduction and insufficient domestic demand, enterprises are cautiously concerned about the future economic prospects, and the production and investment activities of light industry represented by the textile industry continue to slow down. Fundamentals, the intensity of recent cotton enterprises' linen recharge has tended to weaken, and the market's expectation for spring demand has subsided. Recently, the main cotton producing provinces in the country have been carrying out the spring sowing and preparation work. When the state announces the new year's annual storage price of 20400 yuan / ton, the market pays more attention to the fluctuation of planting area.

Under the influence of the India government's ban on the export of cotton and the loosening of the global cotton production and demand forecast released by the US Department of agriculture last week (USDA) last week, New York cotton futures continued to decline in March. In March 16th, New York cotton futures contract settlement price in May 2012 was 87.5 cents / pound, down 1.3 cents / pound, or 1.5%, compared with last week. The international cotton index (M), which represents the average price of the Chinese main port on the import cotton, is calculated at 1% tariff. The cost of import of RMB is 16070 yuan / ton, down 160 yuan / ton, or 1% yuan, lower than the domestic market 3551 yuan / ton, the price difference increased 151 yuan / ton compared with last week. According to the sliding tax, the import cost of the folded RMB is 16597 yuan / ton, down 135 yuan / ton compared with last week, or 0.8% yuan, lower than the domestic market 3024 yuan / ton, the price difference increased by 126 yuan / ton last week.

Although Greece's debt problem has been temporarily alleviated, the process of how to achieve economic growth and reduce unemployment rate is doomed to be arduous and long when European countries use the austerity policy to solve the debt problem. On the US side, the US economy continued the recovery trend in the fourth quarter of 2011 in the first quarter, and the new non-agricultural employment continued to exceed 200 thousand in three months, exceeding the market expectation. The policy statement issued by the Federal Open Market Committee (FOMC) this week is also optimistic about the economic outlook, which makes the Fed's probability of a new round of quantitative easing continue to weaken, which is unfavorable to the short-term commodity price trend. Fundamentals, although the US cotton export data show that the volume of contracts and shipments continue to increase steadily, so that the international cotton price is expected to be supported, but because of the depressed consumption, it is difficult to get rid of the weak tone. The recent international cotton prices are expected to continue to be vulnerable and narrow shocks.