Cotton Prices Rose Ten Years To A New High Of &Nbsp;

Wang Ming Bo

Once unknown

It began its legend.

During the Mid Autumn Festival and the National Day "double section" gap, when investors were attracted by the international gold price of 1300 US dollars / ounce, perhaps they had not noticed that the cotton price which had long been out of date had reached the height of cold.

Yesterday, Zheng cotton 1105 contract closed at 22185 yuan / ton, once again refreshed since the listing of the high point, or 2.68%, turnover of about 1 million 256 thousand hands.

In the past two months, the Zhengzhou cotton index has soared by about 30%.

On the spot side, in September 28th, China's cotton price index (CC Index 328) closed at 21836 yuan / ton, up 581 yuan / ton from the previous day, and once again refreshed a ten year high.

Insiders say that

Even the American cotton is coming to the hilt.

As of press release, ICE cotton futures contract price has risen to 105.55 cents / pound in December.

The cotton contract has speeded up about 40% in the past two months, and its closing price has repeatedly recorded a record high in the latest week.

In the face of the surging internal and external market, since August 10th this year, the State Reserve has launched the "open warehouse and cotton release", that is, to sell 600 thousand tons of state reserve cotton through the national cotton trading market, so as to stabilize domestic cotton prices.

In September 27th, the relevant departments officially announced plans to increase the 400 thousand tons of national cotton reserves for sale and sale. The aim is to ease the market shortage caused by the delayed delivery of new cotton due to weather reasons.

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However, judging from the futures market, speculative funds seem to be somewhat numb with regard to the policy of dumping and storage, and do not see the shadow of massive withdrawal of capital from cotton futures.

Although there are two trading days away from the National Day holiday, the volume of the 1105 contract of Zheng cotton futures yesterday was only slightly lower than that of the 1 million 760 thousand day before yesterday, but its holdings increased slightly to 380 thousand.

This achievement is based on many Futures Company raising the margin level of customers. According to a reporter from a number of Futures Company customer service departments in Shanghai, as of September 28th, the margin of cotton futures trading increased from 15% to 24%.

Even more surprisingly, the weighted average paction price of the national storage cotton auction rose from 18208 yuan per ton to 21776 yuan per ton from the first day of the "opening of cotton" in August 10th to September 27th, and the price of the state storage cotton auction was 18208 yuan per ton (22374 yuan / ton at the 328 level cotton price).

The bulk of raw materials "more and more" is actually very common, cotton.

According to its introduction, the throwing and storing of cotton is not selling at the lowest price, but by auction, and the final price is high.

He also pointed out that the domestic cotton reserves are also less, which is difficult to play a practical role in restraining the current price.

Insiders pointed out that despite the continuous introduction of domestic dumping and storage policy, the key reason for the rise in cotton prices may be the gap between supply and demand of global cotton, and domestic policies can hardly conceal the global shortage of cotton, which is the illusion that cotton prices are rising and falling.

According to the US Department of agriculture, the world's cotton consumption has been more than 2005/2006 since the year, resulting in tight global cotton stocks.

The gap between production and consumption in 2009/2010 expanded to 16 million packages (about 170 kg per pack). It was expected to shrink to 3 million 500 thousand packs in 2010. However, the global stock prices continued to shrink in the end of 2010, leading to a continuous rise in global cotton prices.

The agency said global cotton stocks in 2010/2011 were expected to decline for the fourth consecutive year to the lowest level in 14 years.

However, under various advantages, many domestic brokers do not recommend "high price" in the historical high price of cotton.

Beijing interim report said that considering the high price of cotton, the upcoming National Day holiday and the national increase in reserves and other factors, it is suggested that investors should adjust their last two trading days to a reasonable percentage of positions so as to avoid risks.