For more than a month, the transaction rate and the price of the sale of Chinese cotton and cotton have been the focus of market attention. To analyze its reasons can be found that in the case of cotton market downstream demand is relatively stable, the market there is growing competition between various supply resources, when the state reserve cotton prices higher, imports of cotton and cotton futures has become the main object of procurement; When zheng cotton futures and international cotton prices rise, demand for enterprise purchasing behavior at zheng cotton market price reduction, sales of imports of cotton can also be reduced, the state reserve cotton auction sell-through rate will be higher.

In the past five months, the national savings and cotton program has sold 56.88 million tons, a turnover of 37.57 million tons, a turnover rate of 66.1 percent, down 5 percent from April. Since June, zheng cotton with the international cotton prices fell in, by cancellation of the number of cotton futures hasten to add, but as a result of state reserve cotton auction base price cut, state reserve cotton price advantage is more apparent, state reserve cotton especially ChanMian sell-through rate increased obviously.

Trading center, deputy general manager of Shanghai international cotton JiGuangPo believe that cotton is a strong trend of varieties, zheng cotton listed in 13 years, showing strong trend and long cycle characteristics.

"The trend of the cotton market once formed, it is difficult to change, the current domestic cotton city is in a large rise. From January - may zheng cotton line, at the bottom of the forms is a gradual rise trend, recommends that investors don't short at the bottom, and based on the characteristics of zheng cotton trend is very strong, is expected to gradually raise the probability of a larger at the bottom of the futures in the future." JiGuangPo said, from the state reserve cotton auction clinchs a deal price, rose to 13000 yuan/tons this year from last year's 15000 yuan/ton, this means that the market demand is stable.

Ji guangpo told reporters that the gap between domestic and foreign cotton prices has narrowed since April, indicating that domestic cotton demand is better, and the current price difference is between 500 and 1,000 yuan per ton. In late may, it is worth noting that the relevant authorities issued a research report on china-us economic and trade relations, said China is willing to further increase the U.S. soybean, cotton and other agricultural imports. Due to domestic cotton city supply gap is very big, the future of our country imports the probability of the rapid increase in the amount of cotton will be larger, and an increase in the number of American cotton imports could suppress domestic cotton prices.

Lu card futures business managers Zhou Dalong agricultural department told reporters that in the early part of the state reserve cotton for sales this year, with high price, demand downstream products, textile enterprise procurement state reserve cotton processing and conventional cotton profits in 800-1000 yuan/ton, state reserve cotton sell-through rate is higher. Later in the downstream product prices, orders, textile enterprise's profit is compressed, now only in 150-200 yuan/ton, plus futures, imports of cotton, cotton import yarn price downward, state reserve cotton brought in nature it is difficult to keep high.

"XinJiangMian account for a large proportion in the futures of cotton, cotton quality and price analysis, from the futures futures cotton is equivalent to the quality of the circulation in the spot market slightly bad XinJiangMian. After sex price comparison, demand enterprise procurement is mainly used in producing high count cotton futures, state reserve cotton procurement mainly for the production of medium and low-grade yarn, purchasing state reserve cotton or cotton futures, basically see to produce products of high and low profit." Zhou Dalong said.

According to the reporter, the area of New Year global cotton grows quite a lot, because of the good weather of the region, the new cotton yield and the overall yield forecast are optimistic. The main cotton producer of cotton planting progress smoothly in the northern hemisphere, such as American cotton planting progress not only higher than the same period last year, and higher than the average in recent five years, the northern Indian cotton planting has been largely over. At home, the work of cotton planting in xinjiang is over, and the cotton of turpan has entered its current stage.