East Asian Futures: US Cotton Trading To Boost Cotton Continues To Rise

Internationally, market sentiment has been boosted by the fact that China only raised the reserve requirement for banks rather than raising interest rates, which slowed down the market.

On the spot market, China's cotton price index (328) is 26942 yuan per ton, up 69 yuan per ton.

In December 13th, the import cotton price index (FCIndex S) was 171 cents / pound, up 1.08 cents / pound; 1% tariff 28808 yuan / ton, up 181 yuan / ton; discount sliding duty 29169 yuan / ton, up 179 yuan / ton.

Domestic cotton fundamentals have not changed, the shortage has not been improved, and cotton supply is still tight.

In the US Department of agriculture's latest supply and demand forecast report, China's cotton supply and demand forecast data for November were maintained. In 10/11, the domestic cotton gap reached about 400 million, and it needed to rely heavily on imports. Under the condition of high US cotton prices, domestic cotton will remain high.

In the industrial chain, hoarding cotton enterprises are buying a lot of cotton at a high price and unwilling to sell at low prices.

The general stock of the mill remained at 1-2 months, and the demand for replenishment was expected before and after the Spring Festival.

Although short-term policy factors remain, but with cotton prices gradually stabilized, the latter trend will return to fundamentals, cotton prices are expected to continue to rise.