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Cotton Is Low And High &Nbsp; Restricted 20 Day Moving Average.

2011/10/27 15:40:00 19

Cotton futures closed up on Wednesday for fourth consecutive days, helped investors buy and cotton futures contracts returned to the recent trading range.

Intercontinental Exchange (ICE) index in December cotton rose about 0.64 cents CTZ1, at 1.0032 dollars per pound, the intraday trading range of 0.9948-1.0073 dollars.

Today, Zheng Mian 1205 contracts go up and down.

Low opened at 20280, the highest 20350, the lowest 20265, closed at 20305, compared with the previous trading day fell 15 points (-0.07%).

cotton

The index positions are reduced by 1940, and turnover is more than 50 thousand.

In the spot market, in October 27th, China's cotton price index (328) was 19482 yuan / ton, down 15 yuan / ton.

In October 26th, the import cotton price index (FCIndex S) was 120.03 cents / pound, up 0.42 cents / pound; 1% tariff 19460 yuan / ton, up 68 yuan / ton; discount sliding duty 19913 yuan / ton, up 66 yuan / ton.

At home, new cotton picking has entered the peak season, but the acquisition market is characterized by a poor peak season.

Most cotton farmers are still optimistic about the future market, and think that there will be rising prices and selling cotton.

But in some parts of Xinjiang, cotton seeds are not sold when the price of seed cotton is high in the early stage. In recent days, prices have been low and there has been a rush sale.

This week, the average purchase price of Xinjiang local grade 329 seed cotton was 8.75 yuan / kg, down nearly 1.5% compared with the last week of September.

In terms of purchasing and storage, this week accumulated a total of 21510 tons, greatly exceeding the previous 2150 tons.

store up

The sharp increase in turnover shows that cotton processing enterprises are not optimistic about cotton prices in the future, so more choices are made for storage.

The cotton planting area of the new year is 77 million 800 thousand mu, an increase of 4.7%, and the output is expected to grow at 7 million 290 thousand tons, an increase of 9.84%.

The overall supply increased considerably compared with last year.

In terms of demand, it is influenced by the macro level.

Economics

The impact of the downturn is estimated to be 9 million 906 thousand and 300 tons, down 108 thousand and 900 tons or 1.09%.

According to the current fundamentals, domestic cotton production can not meet domestic demand, the gap is expected to be around 2 million 600 thousand tons, while the country's current quota is only 800 thousand tons.

If we calculate the purchase and storage, the supply and demand of domestic cotton market this year will depend on the control of the state.

Judging from the trend of the disk, today, Zheng cotton 1205 low opening, intraday concussion dominated, positions slightly reduced.

Cotton trend continues to be volatile today, but it is still on the 10 day line. On the whole, the overall commodity rebounded, but the cotton is constrained by the fundamentals, and the cotton growth space is limited.

At present, it is recommended to wait and see in operation.

The above views are for reference only, not as the basis for market participants to enter the market. Futures are risky and investment must be cautious.