The Proportion Of Foreign Cotton Trading Is Low, And The Quota Price Falls Sharply.

Zhangjiagang and

Traders in Ningbo and other places indicated that the spot market was still cold since mid August, except for Australia cotton, Brazil cotton and a few high quality cotton products.

Shipments are very difficult. On the one hand, the price of cotton CIF outside the port is high, and the price of high-grade cotton is already higher than that of the buyer's psychological limit (3-5 cents / pound). On the other hand, the demand for cotton in Southeast Asian countries such as India and Pakistan is relatively strong, and the number of CCI auction is large and the turnover is stable. (August 18th) the total volume of CCI throwing and storing has accounted for 56% of the purchase volume.

Businessmen should rush to port and adjust their pport destinations.

It is understood that although 7, August domestic market 1% tariff import quota pfer of cotton, agent

The phenomenon is less and less (mainly concentrated in several "Sino word" head companies and large foreign cotton importers), but as the price of foreign cotton continues to be strong, and domestic futures and cotton spot prices continue to decline, and in addition, the new cotton market is expected to become stronger in 2015/16, and the proportion of national cotton auction sale is low, so the quota pfer price has dropped from the highest 2800-3000 yuan / ton in 4 and May to the current 1700-1800 yuan / ton (although the price of individual ports is still around 2000 yuan / ton, the actual turnover is at least 100-200 yuan / ton).

The US Department of agriculture's monthly supply and demand report on cotton in August showed little Van Welido (the decrease in production forecasts decreased, and the demand side did not change). The bull and capital sides were still more optimistic, so the ICE main contract remained at a high level, but it had recovered markedly.

Some foreign businessmen and institutions believe that cotton production in the US cotton and India is still very uncertain before the harvest of cotton. ICE futures will remain near 68 cents in the short term. Although the short-term and upward breakthroughs will not be ruled out under the impetus of capital and weather factors, the excessive cotton inventory in China and India and the strong atmosphere of buying and selling in the market will seriously restrict the rising space of domestic and foreign cotton prices and pay close attention to whether ICE can get close to and accept 70 cents / pounds.

Some cotton growers and cotton merchants plan to increase the coverage of the main contract in the market of 68-70 cents / pound.