Cotton Prices In The Recent Cotton Market Tend To Be Stable

December 10th -14 week, Cotton market 490 thousand tons of storage and storage were increased, an increase of 169 thousand tons compared with last week, of which 227 thousand tons of key enterprises were registered, an increase of 136 thousand tons compared with last week. As of December 14th, 2012 cotton Temporary storage and storage transactions totaled 4 million 305 thousand tons, including 1 million 356 thousand tons in the mainland, 2 million 96 thousand tons in Xinjiang and 853 thousand tons in key enterprises.

Driven by the policy of purchasing and storage, domestic cotton prices have maintained a steady upward trend. Cotton yarn prices dropped slightly. In December 14th, 32 cotton combed yarn prices were quoted at 25710 yuan / ton, down 5 yuan / ton, or 0.02%, down 160 yuan / ton compared with last week, or 0.6%, and polyester staple price 10630 yuan / ton, up 100 yuan / ton compared with last week, or 0.9%, down 750 yuan / ton compared with last week. The average price of cotton seed purchase in the mainland was 4.2 yuan / kg, up 0.2% yuan from last week, or 0.2%, up 0.19 yuan / Jin, or 4.7%; the average price of seed cotton purchase in Xinjiang was 4.07 yuan / Jin, down 0.02 yuan / Jin, or 0.5%, up by 0.02 yuan per kilogram, or 4% percent. The national cotton price B index, which represents the average selling price of lint cotton in the mainland, is 19088 yuan / ton, up 58 yuan / ton compared with last week, or 0.3%, down 22 yuan / ton compared with last week, or 0.1%. The average selling price of Xinjiang standard lint is 19422 yuan / ton, up 39 yuan / ton compared with last week, or 0.2%, down by 345 yuan per ton, or 1.7%. Zhengzhou cotton futures contract settlement price in January was 20285 yuan / ton, up 595 yuan / ton compared with last week, or 3%, up 50 yuan / ton compared with last week, or 0.2%; the average contract price of the national cotton trading market electronic matching January was 19383 yuan / ton, up 69 yuan / ton compared with last week, or 0.4%, down by 272 yuan per ton, or 1.4%.

The main task of next year's economic work put forward by the two day central economic work conference is to expand domestic demand and reform the tax system and so on. This is still the focus of next year's work. China's economic growth prospects are good. In December, HSBC's PMI value of China's manufacturing industry was 50.9, up 50.5 from the previous month, reaching a 14 month high. In addition, China's power generation and industrial added value increased by 7.9% and 10.1% over the same period in November, respectively, the highest level since the beginning of this year and April. The better data indicate that the current macroeconomic environment has improved. Basically, the current Spin The sale of yarn and cloth has slowed down, the quoted price has been softened, and the pressure of stock has increased. The China cotton market monitoring system, which was built by China cotton reserve management corporation, showed that the yarn and cloth production and sales rate of textile enterprises decreased by 2.1 percentage points and 4.7 percentage points respectively from the beginning of December, compared with last month. In 2012, cotton temporary storage and storage totaled 4 million tons, and spot resources in the market were becoming more and more tight. It is expected that domestic cotton prices will keep rising.

The US fourth round of quantitative easing policy was introduced, the US dollar index fell, and the rising commodity market drove New York cotton futures prices up. With the rising spot price in December, interest in textile enterprises decreased and cotton spot prices moved more smoothly. In December 14th, New York cotton futures contract settlement price in March was 75.09 cents / pound, up 1.3 cents / pound compared with last week, or 1.8%, down 10 cents / pound, or 11.8%. The import price of China's main port for import cotton (M) is calculated at 1% tariff. The cost of importing RMB is 13624 yuan / ton, which is 36 yuan / ton lower than last week, or 0.3% yuan, lower than the domestic market 5464 yuan / ton, the price difference increased 94 yuan / ton compared with last week. According to the sliding tax, the cost of import is 14606 yuan / ton, down 26 yuan / ton compared with last week, or 0.2% yuan, lower than the 4482 yuan / ton in the domestic market, and the price difference increased by 84 yuan / ton last week.

The Federal Reserve Open Market Committee (FOMC) Conference on interest rates explicitly linked the central bank's interest rate policy directly to the unemployment rate. Before the unemployment rate dropped to below 6.5%, the ultra-low interest rate would remain unchanged. At the same time, the fourth round of quantitative easing (QE4) policy was added, starting from 2013, buying 45 billion US dollars of longer-term US Treasury bonds every month to replace the "reverse operation" which expired at the end of December. But for the "fiscal cliff" issue, the US bipartisan negotiations have not made any progress. The re injection of market liquidity will increase the pressure of market inflation and the price of commodity market, but its role in boosting the economy remains to be seen. The recent political change in Italy has brought the European debt crisis to a shadow. The strong commodity market will benefit the future cotton futures price in New York, but the real economy and the downstream cotton consumption level will have limited affordability to cotton. According to the US cotton export weekly of the US Department of agriculture (USDA), the net contract volume of US cotton exports in the year of 2012/13 was 64 thousand and 400 tons in the week of 6 months of November 30th, compared with the previous week, a decrease of 32% from the previous week, a decrease of 24% compared with the average of the previous four weeks, and the international market since December. -12 Cotton price The continuous rise has made it difficult for textile enterprises to accept, and there is a limited space for late growth.