Market concern

The wheel storage scheme finally settled.

According to the announcement issued by the national development and Reform Commission, according to the current situation of cotton supply and demand and market operation, this year, we will arrange the reserve cotton wheel storage through the national cotton trading market in 7 and August.

The number of round storage is temporarily set at 1 million tons.

The analysis points out that wheel storage has a certain impact on the cotton market, but it can not change its weak pattern.

According to the announcement issued by the State Council and approved by the State Council, the relevant departments decided to follow the principle of promoting sustainable and healthy development of the industry, guiding the smooth operation of the market, lightening the financial burden and improving the cotton storage control mechanism.

Inventory will gradually reduce the reserve scale to a reasonable level.

According to the current situation of cotton supply and demand and market operation, this year, the cotton trading market will be arranged in the form of open bidding in 7 and August through the national cotton trading market.

The quantity is temporarily suspended by 1 million tons, and the sale will stop after the beginning of the new year in September. The specific quantity and price arrangement are: 330 thousand tons of domestic cotton in 2011, bid price base (3128B, the same below), 13200 yuan / ton, 470 thousand tons of domestic cotton in 2012, the bid price of 14200 yuan / ton, 200 thousand tons of imported cotton in 2012, and the bid price of 15500 yuan / ton.

The rotation will be arranged separately according to the actual paction situation and the late market operation, and will be selected in the new cotton concentrates during the listing period. The maximum number of rounds will not exceed 40% of the total number of rounds, and the price will follow the market.

This reserve cotton pulley will begin in early July.

Cotton futures have been at a low level due to weak domestic demand and huge inventory.

Earlier, the market's speculation about El Nino weather stimulated US cotton to rise, but in the face of weak domestic fundamentals, domestic cotton

It also maintained a lower position fluctuation.

Wang Yan, an analyst with CITIC futures, said that the stock market may cause fluctuations in the market in the short term, but it will not change.

The overall weakness.

The price of dumping is not low, and whether these reserve cotton can enter the market smoothly is unknown.

Galaxy futures researcher Chen Xiaoyan believes that cotton weakness has three main points.

First, 2014/15 is the most serious year for cotton oversupply. The global inventory consumption ratio has reached the highest level in nearly forty years. Although 2015/2016 has entered the inventory cycle, the global and Chinese inventories are still at a high level, and stocks are still pressing against cotton prices.

Two, there are structural problems in domestic cotton, and the excessive supply of low quality and low grade cotton is more serious. Cotton producers will sell the cotton which is difficult to sell through the futures market of the production warehouse, a large number of cotton futures orders will be priced at a low level, and three is a large number of imported cotton yarn to suppress demand.