Soochow **: Cotton spot prices held steady

On July 4, the Zheng cotton market opened higher and closed lower, closing at the Yinxian, closing at 19415, down by RMB 100/t from the previous trading day. Trading volume was reduced to 258,748 lots, and positions increased 12,580 lots to 300,894 lots. Judging from the top 20 positions of Zheng Cotton, the total number of long positions increased by 4,403 to 133,651, and the total number of short positions increased by 2,745 to 174,431. The main net short position decreased. Yesterday, the number of cotton warehouse receipts at Zhengzhou Trading House was 2,851, a decrease of 22 from the previous trading day, and an effective forecast of 128. The US cotton market is closed.

In terms of spot, China's cotton price index was unchanged at 18,156 yuan/ton on July 4. Imported cotton FCindexM price rose 0.68 cents/pound to 85.15 cents/pound over the previous trading day, import cost was 1% tariff price 13699 yuan/ton, sliding slip tax price was 14607 yuan/ton, imported cotton slipped tax Less than 3549 yuan per ton of domestic cotton.

In the downstream market, on the 4th of July, the price of KC32S downstream yarn was flat at 24,605 ​​yuan per ton compared with the previous trading day. The price of JC40S was flat at 30,580 yuan per ton compared with the previous trading day. Market transactions were fragmented.

For cotton substitutes, the price of polyester staple fiber rose by 120 yuan/ton to 9,800 yuan/ton on the previous trading day; the price of viscose staple fiber rose by 20 yuan/ton to 14,670 yuan/ton on the previous trading day. Trading atmosphere is normal.

Related Information:

In June, the cotton in Zhangjiagang Free Trade Zone decreased slightly.

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The central bank implemented a RMB143 billion reverse repurchase operation yesterday, setting a new high for reverse repo operations this year.

Summary: Cotton basics point of view, the spot price of cotton held steady, is currently in the traditional off-season, the overall weakness of the cotton yarn market in Shaoxiao area is hard to change, the mill continued to cut production to limit production through the traditional off-season, the textile market is facing tight funding, The lack of orders, the excessive price gap between domestic and foreign cotton, and the shrinking profits have not yet been reversed. The ICAC report shows that the ratio of cotton stock consumption in the next year will reach a high point of nearly 30 years, and larger ending stocks will bring greater pressure on international cotton prices.

Yesterday, the main cotton 1301 Zheng cotton contract was the main short pressure, the main long although tit-for-nothing but slightly weak, the disk opened higher and lower, closing closed Yinxian. In the short-term moving average, the J indicator in the KDJ indicator turned down, the MACD indicator rose, the red bar remained flat, and the rebound stopped. Overnight due to the European Central Bank will announce the interest rate decision on Thursday, while the US non-agricultural employment data will be released on Friday, the market performance is relatively cautious, the US dollar index up. In the short-term Zheng cotton, the fundamental weakness will not change, or it will show a pattern of weak shocks. However, due to the strong supporting role of the new year's storage and storage prices, a meeting on cotton textile work will be held in the near future. At the same time, in mid-July, the country will collect and store in 2012. The work conference will also be held. More details of the storage and storage are expected to come out. This meeting will give Zheng cotton a certain boost. Operation, the early 19100-19300 admission more than a single carefully held, stop loss of 19,100.