The spot price dropped further Zheng cotton fell slightly

Outer disk trend: Intercontinental Exchange (ICE) cotton ** fell from a four-week high on Monday, encountered technical resistance, prompting investors to take profits. The most actively traded ICE-7-month cotton settled down 1.02 cents, or 1.1%, and settled at 92.23 cents per pound, up 93.53 cents.

Domestic trend: Zheng cotton 1501 contract fell slightly on the 29th, opening at 16,150 yuan / ton, closing at 16,110 yuan / ton, compared with the previous trading day fell 40 yuan / ton, trading volume has shrunk dramatically, positions increased 894 to 125,944 hands .

Message surface:

1. It was recently learned from related departments that Henan included cotton into the input tax deductible pilot scope.

2. The Indian Apparel Export Promotion Council (AEPC) stated that the Indian Rupee devaluation in the first few months of April 2013-March 2014 and the U.S. economy was recovering. Indian apparel exports reached US$14.94 billion, up 15.4%.

In terms of spot, the price of cotton index 3128B was 17,527 yuan/ton, down 171 yuan/ton from the previous day.

Conclusions: The spot price of domestic cotton continues to be lowered, which has a negative impact on the price of Zheng cotton. Technically, Zheng cotton 1501 contract to maintain a weak oscillation operation, above the 60-day moving average pressure. Operation, short-term wait and see is appropriate.

External disk overnight, on the 29th, US stocks strengthened and commercial selling dried up triggering a large number of technical buying. The ICE** July contract broke above its previous highs and eventually closed above 94 cents. Trading volume was significantly enlarged. After the July contract broke through the early consolidation range and opened the uptrend channel, cotton prices will continue to remain strong.

In the cotton market, at present, the textile mills have little enthusiasm for bidding for the State Reserve Cotton. The betting government will issue quotas in May. From the market situation, the decline in cotton prices did not affect the confidence of cotton traders, especially the high-grade cotton prices are expected to remain strong.

Spot price quotation, April 29, International Cotton Index (SM) 100.28 (cents/lb), fell 101 points, discounted general trading port pickup price 16526 yuan/ton (According to sliding tax calculation, the exchange rate according to the Bank of China median price ); M refers to 96.89, fell 100 points, discounted general trading port delivery price of 16,142 yuan / ton.

According to the State Reserve News, on the 29th, the China Cotton Storage Group plans to issue 90,000 tons of reserve cotton for export, all domestically produced cotton, with a turnover of 30,000 tons and a turnover rate of 32.83%. As of the same date, the cumulative sales of reserve cotton in 2013 was 1,325,600 tons, of which 1,237,600 tons of domestic cotton were sold, and 88,000 tons of imported cotton was sold.

Market analysis, import quotas gradually issued to boost the operating price of the outer disk; China's cotton policy has become a fulcrum, guiding the international cotton price.

Operationally, the internal disk waits for direct supplements.