October 9, 2012 Institutional Watch - Cotton Futures

　　 [Hongyuan futures Grasp the pulse of policy is particularly important.

Main points

1. Price Bulletin: domestic lint: 129 level 20499 yuan / ton; 229 level 19628 yuan / ton; 328 level 18752 yuan / ton; 428 grade 17914 yuan / ton. Domestic textiles: polyester staple fiber 10920 yuan / ton; viscose staple fiber 14980 yuan / ton; C32S price 25720 yuan / ton.

2. domestic stock: 8, domestic cotton spot prices continue to operate smoothly. Before the end of the festival, the raw material inventory of textile enterprises has been supplemented. Due to the weak consumption, some textile enterprises have long holidays on national day, which has restrained the purchasing demand for raw materials. After the holiday, the purchase price of seed cotton remained stable, and prices in some areas rose slightly.

3. importing cotton: Cotton traders said that ICE futures continued to decline during the long holidays in China, but the market demand in China was expected to recover. In addition, the Cotton Advisory Committee of India has increased the cotton production this year. However, the India General Administration of foreign trade has stipulated that the single cotton export contract of India cotton should not exceed 1700 tons this year, which may have an impact on the export of the cotton merchants.

4. Cotton Conference: in order to do a good job in cotton production in 2012, the relevant ministries and commissions of the state decided to jointly hold a nationwide teleconference on cotton work in October 9th. The conference will analyze the current cotton production and marketing situation and deploy the cotton work in 2012.

5.ICE cotton: in October 8th, ICE cotton generally rose, the recent settlement price in October was 70.43 cents / pound, up 63 points, and the main contract price in December was 71.78 cents / pound, up 29 points. On the same day, the market lacks direction, investors are concerned about the global cotton supply and demand forecast report released by the US Department of agriculture on 11.

Summary:

During the national day, cotton The acquisition of enterprises is cautious, the price of domestic seed cotton fluctuates slightly, the spot market turnover is light and the stalemate has not yet been broken; the international cotton price rises first and then falls, and the narrow fluctuation is the main keynote; the downstream textile yarn market is more stable. In October 9th, relevant government departments will hold a meeting to analyze the current cotton production and marketing situation and deploy cotton work in 2012. We believe that before the global demand for cotton has obviously improved, the three tier structure of cotton prices in China will not change. On the one hand, we must maintain the idea that cotton prices will run for a long time.

[one German futures] policy to protect cotton city zhengmian rebounded short selling

CF1301 weakened on Monday, while CF1301 closed more than 4.7 hands, with its holdings slightly reduced. CF1301 closed at 19440 yuan / ton, up 145 yuan / ton, reduced 2288 hand; in October 8th, China's imported cotton (FC Index M) 84.99 cents / pound, up 0.39 cents / pound, 1% yuan tariff reduced price 13756 yuan / ton, sliding price conversion price 14655 yuan / ton.

According to New York's October 8th news, cotton futures rose flat on Monday, due to speculative short compensation and a surge in the grain market, offset the slowdown in the world's largest cotton market in China. ICE12 cotton settlement price rose 0.41%, at 71.78 cents per pound.

In October 8th, the cotton trading market in the national cotton trading market reached 12560 tons, an increase of 6520 tons over the previous transaction, an increase of 40 tons in orders, and a total purchase of 92520 tons. On the 8 day, the opening price of each contract was high and low. On the basic level, the cotton put into operation ended in September 29th, and the total turnover was 493 thousand and 700 tons, and the turnover price of the 328 grade cotton was 18640 yuan / ton.

On Monday, Zheng cotton was weakened after being rushed to the high level. There was not enough kinetic energy and good news. Zheng cotton rebounded slightly. Today, the state ministries and commissions have held a national teleconference on cotton work for nearly two days. Zheng cotton There is a need for rebound, but selling short on high will be the main idea. Today's operation proposal, waiting for nearly two days rebound, 19700 near the layout of empty single, CF1301 reference price range is 19300-19600.