Rumor that India bans cotton exports, Zheng cotton straight up in the afternoon

On Monday (March 5th), Zhengmian fell first and then rose. After midday, the market rumors lifted as market rumors were bullish. The main 1209 contract closed at 22040 yuan/ton, up 280 yuan from the settlement price on Friday.

On the disk, the price of the morning price continued to be weak on the morning of the 5th. However, in the afternoon, the market rumors that India banned cotton exports and triggered a sharp rise in the US cotton. This led to the domestic cotton price expected to rise in the afternoon. On the whole, after the announcement of the cotton purchasing and storage price in the new year, Zheng cotton went down, indicating that the speculative space has been released, while the downstream demand is always a long-term profit, and the overall cotton price is unlikely to perform well. However, the new year's closing prices confirmed that the decline rate in the 20400 situation is relatively not too large, and the September contract has recently maintained its support for a weak shock pattern around 21800 yuan.

Recently, textile companies have wait-and-see sentiments, and the number of purchases of cotton yarns by downstream weaving mills and garment factories has decreased significantly. Among them, Cotton Yarn sales in Shandong were weak, and prices declined. On March 2, the average price of C32S pure cotton yarn was about 26,300 yuan/ton, which was about 200 yuan/ton lower than last week. Textile enterprises are in poor condition. If this situation is maintained for a long time, some textile companies will restrict production, suspend production or even close down.

In addition, due to the high price of cotton in Xinjiang, the current enthusiasm for textile companies to purchase Xinjiang cotton has been lower than imported cotton. In the cotton procurement in the past three months, the proportion of Xinjiang cotton accounted for only 39.62%, down more than 10% year-on-year. From the perspective of the changes in the proportion, a number of textile companies have reduced the use of Xinjiang cotton and increased the amount of imported cotton. The demand for Xinjiang cotton is still mainly for use with purchase.

In terms of storage, the China Reserve Cotton Management Corporation planned to collect and store 95,750 tons of cotton in 2011 on March 2. The actual turnover was 11,740 tons, and the transaction rate was 12.3%. As of March 2, the cumulative transaction volume of cotton purchases and storages for the current year totaled 27,120,070 tons, of which 1,155,630 tons were traded in the Mainland and 1,558,440 tons were sold in Xinjiang.