Outer Cotton: High Grade Spot Or Shortage

< p > recently, there has been an increase in the number of a href= "http:// www.sjfzxm.com/news/index_c.asp" > outer cotton < /a > supply or current vacuum in 9-10 months. The quotations of foreign merchants and CIF traders have stabilized signs of stabilization, especially for high-grade cotton harvester cotton, SM, GM grade cotton and SM 1-5/32 "West African cotton". On the one hand, the Chinese government's national cotton auction ended at the end of August, and the cotton enterprises and middlemen in August had a low willingness to expand raw material inventory in August.

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< p > on the other hand, although the number of "a http://" www.sjfzxm.com/news/index_c.asp "> a /a" pportation "/a" and "India cotton" and "Ao cotton" arrived in Hong Kong in 6-7 months, the ranks were mostly reduced to M, SLM level, length 1- 3/32 and strength were lower than that of 28GP. Therefore, there were not many varieties and batches that could select and stimulate interest in buying and selling large and medium-sized cotton mills and operators with quasi tariff and 1% import tariffs within the 1% tariff. Some buyers had visited goods in Qingdao, Shanghai and other bonded areas many times.

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< p > some businessmen indicated that the growth of cotton in China's < a href= "http:// www.sjfzxm.com/news/index_c.asp" > Xinjiang < /a > India cotton area was significantly delayed than in previous years. The seed date of Xinjiang cotton seed is expected to be postponed for 7-10 days. The cotton in India is at least postponed for more than two weeks. The proportion of SM cotton and GM grade imported from Xinjiang is only 30%-40%, so the high-grade cotton spot or the lower grade cotton will be bottomed and rebounded ahead of time, but we need to take into account that this year cotton production is much higher than expected and the varieties are very good. Once the high-grade cotton "gap" is lost in 9-10 months, the sale of cotton in the 10-12 year will become an inevitable choice.

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< p > it is understood that in July, the cotton planting area in India increased by 30 million mu, and the planting area affected by the monsoon delay and the late rainfall continued to increase. Especially in Gujarat and central Pradesh, the Chinese government did not set up a direct subsidy to Xinjiang cotton area and when the domestic cotton price was lower than that of the outer cotton 1000 yuan / ton, it would initiate a plan for Emergency Purchasing and storage. Rumors of using cotton enterprises and traders waited and waited for the sentiment to become stronger. ICE futures rebounded in the external commodity market. The short-term technical support and the signing of the US cotton far month shipping contract were more favorable, and the venture fund was afraid to enter the market in the 62-65 Penny narrow body.

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< p > funds are obviously insufficient and news is in vacuum. Therefore, the rebound of ICE's main contract can not be expected to be too high. In the case of short lead market and disk, it is expected that the test of the 60 cents mark will be strong.

Due to fears that USDA8 cotton report will continue to increase cotton production in the United States, the increase in the end of the US cotton inventory and the reduction of global cotton consumption are mainly bad. With the substantial increase in the volume of ICE warehouse receipts and the expected pressure on the real market, speculative funds and bulls are still in liquidation.

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