Cotton First Rises And Then Falls &Nbsp; The Upper Pressure Is Heavy.

Cotton futures Thursday small

Today, Zheng Mian 1205 contracts first rose and then fell.

Opened at 20680, the highest 20770, the lowest 20680, closed at 20710, up 25 points or 0.12% compared with the previous trading day.

Cotton index positions increased 1958 positions, trading volume of more than 40 thousand hands.

In the spot market, in December 23rd, China's cotton price index (328) was 19136 yuan / ton, up 9 yuan / ton.

In December 22nd, the import cotton price index (FCIndex S) was 103.94 cents / pound; the 1% tariff was 16809 yuan / ton; the discount sliding duty was 17289 yuan / ton, unchanged from yesterday.

Domestically, the Ministry of Finance adjusted the import tariff rate formula of cotton last week.

According to the new formula, the tariff of imported 50.2-100.16 price will be higher than the previous calculation method, which is more than 500 yuan / ton.

So cotton prices rose sharply on Friday.

A more important factor in supporting cotton prices is the State Reserve's market support policy.

As of the end of this week, 2011 cotton temporary storage and storage totaled 1616030 tons, Xinjiang totaled 1095800 tons, and the mainland accumulated 520230 tons.

The purchase and storage of State Reserve changed the balance sheet of domestic supply and demand, absorbed a large number of surplus cotton and lifted domestic cotton prices.

In spite of the fact that the National Reserve has kept cotton prices and guaranteed farmers' interests, the domestic textile enterprises have to use high priced cotton to raise their cost.

Especially in recent years, domestic labor costs have increased. At present, the cost of raw materials is higher than that of foreign competitors, and the overall competitiveness is falling.

Under the weakening demand in Europe and the United States, the domestic textile enterprises are getting worse, and the demand for cotton is more flagging. Therefore, although domestic cotton enterprises are at a low level, but because of the accumulation of their products, they will not have a strong desire to replenish their banks, which will restrict the increase of domestic cotton prices.

Judging from the trend of the disk, Zheng cotton 1205 almost opened today, after the opening, it rose to 20770, followed by a callback, the position has been reduced.

After a continuous 20800 impact, the pressure on the top of the cotton will be larger and the short-term adjustment may be possible.

At present, it is suggested that the early stage multi party exit temporarily.