Affected By External Factors, Zheng Cotton Prices Fell At A High Level.

Domestic market: on Thursday, the main contract volume of zhengmian increased, the price price continued to decline, closing 12920, compared with the previous trading day -1.30%, the highest reported 13110, the lowest reported 12855; turnover 598970, positions 733114, +10014, CF1-5 month price difference 475, -20.

Outward trend: ICE cotton futures fell slightly on Wednesday, cotton futures in ICE12 fell 0.12 cents or 0.16%, and the settlement price was 63.69 cents per pound.

News: 1. In the main production area of Xinjiang, it is expected that 6-8 days, there will be a cold air intrusion into the weather process. The temperature will drop suddenly and may be accompanied by slight to light rain. Of them, there will be 4-5 northwest or north wind during the day from 7 to 8, and the air gap or the open area will be 6-8, and the temperature will drop about 3-5 degrees Celsius. 2. According to the statistics of Pakistan cotton mill Association (PCGA), as of November 1st, the new cotton market in Pakistan was 1 million 36 thousand tons, down 20.8% from the same period last year.

On the spot side: the cotton price index 3128B is 13048, up 35 from the previous day's spot price, and the cotton yarn price index C32S is 21135, up 5 from the previous day's spot price. (unit: yuan / ton)

Warehouse Receipt Inventory: 10766 warehouse receipts, +77, effective forecast, 2753.

Position analysis: on the day of the Zheng cotton contract, there were 20 long positions in 381967 hands, +7562; short positions were 452394 hands, +5714, clear positions occupied a clear advantage.

Conclusion: cotton futures for the ICE declined slightly on Wednesday, as investors were cautious before the announcement of the monthly crop supply and demand report by the US Department of agriculture (USDA). Domestic market: seed cotton purchase cost is rising steadily, and new cotton processing volume is slower than the same period in previous years. Short term new cotton supply is increasing, and demand for autumn and winter orders is coming to an end. Downstream demand is still weak. At present, there are two characteristics of textile enterprises. One is to start replenishment of new cotton. At present, many manufacturers are placing orders in Xinjiang, with better consistency of hand picking and machine picking cotton. Two, there are generally fewer orders in recent textile mills. In general, new cotton procurement costs, cotton production and fermentation and other multiple positive factors support cotton prices, but the total supply of society continues to bear pressure, superimposed downstream demand no substantial improvement, short-term cotton prices need directional guidance, pay close attention to downstream demand and trade relations dynamics. On the operation, it is suggested that the main force of Zheng cotton will be temporarily dropped in the 12600-13300 interval for a short time.