This Year China'S Cotton Purchasing And Storage Volume Has Dropped By 41% Over The Same Period.

According to relevant data, China's current domestic situation in 2013 Cotton reserves A decrease of 41% from 731 thousand and 50 over the same period last year.

China launched a temporary purchase and storage plan in early September to implement the State purchasing and storage policy for third consecutive years and provide support for local cotton growers through a higher purchasing price.

The purchase price is RMB 20400 yuan (US $3400) per ton, almost two times the price of the US ICE cotton contract in December.

Last week, the number of cotton storage and storage in China reached the highest level this year, a total of 329 thousand and 290 tons, of which 240 thousand and 160 tons came from Xinjiang, the main cotton producing area in China.

But the total volume of storage this year is still far below the 1 million 240 thousand tons in the same period last year.

This year China cotton reserve management organization The introduction of new quality standards has narrowed down the scope of storage and storage of cotton. At the same time, some farmers want to raise the purchase price, so they are unwilling to sell.

Related connection

Domestic trend: on the 30 day, Zheng cotton 1405 contract went slightly, opening at 18525 yuan / ton, closing at 18570 yuan / ton, up 40 yuan / ton compared with the previous trading day, the volume has not changed obviously, and the position has increased 1144 to 49932 hands.

Outward trend: Intercontinental Exchange (ICE) cotton futures fell eighth trading days on Tuesday, hitting a nine month low, recording the longest decline in May, resulting in further sell-off due to cotton prices during the harvest pressure period. The most active ICE-12 month cotton contract fell 0.31 cents, or nearly 0.4%, at 78.34 cents a pound.

Message side:

1, 2012/2013 total cotton inspection of 7 million 204 thousand tons in the year of 2012/2013, of which 4 million 471 thousand tons of public inspection in Xinjiang accounted for 62.1% of the market share, while the mainland's public inspection 2 million 733 thousand tons accounted for only 37.9% share.

2, according to the provincial Cotton Association's monitoring point statistics, the average purchase price of seed cotton is about 4.2 yuan / kg, and the acquisition market can be described as "hot and dry". Many enterprises dare not buy in quantity, but the amount of purchase and processing volume have decreased from a year earlier. As of the end of October, cotton picking averaged 62% in the whole province, and the turnover rate was 47%.

On the spot: Cotton index The price of 3128B is 19663 yuan / ton, up 1 yuan / ton compared with the previous day.

Conclusion: because of the expected cotton harvest, domestic supply pressure will not decrease, while the import cotton yarn increment will further squeeze out domestic cotton market demand. Technically, Zheng cotton 1405 contract to maintain the trend of adjustment, KDJ index maintained in the extremely empty area operation, pay attention to 30 days and other averages of suppression. On the operation, the short term high interest short selling forward May contract.