Expected to lower the price of cotton by spiraling production

Due to the large impact of early rainy weather on some cotton areas, the expectation of a reduction in total domestic cotton production in 2012 will boost cotton prices. Entering September, the collection and storage of the new year will begin soon. The policy of depositing and issuing additional quotas will also be implemented. Where will Zheng Cotton go?

The effect of the policy remains to be seen. The recent implementation of a series of cotton policy combinations in the country has provided an overall boost to cotton prices, but the strength remains to be seen. At the end of August, the National Development and Reform Commission issued 400,000 tons of processing trade quotas to ease the demand of textile enterprises for external cotton. In early September, the National Development and Reform Commission launched a reserve cotton debut. It is estimated that a total of 1 million tons of cotton will be put into the market, including 300,000 tons of cotton in 2008 and 700,000 tons of new cotton in 2011. The starting price will be 16,000 yuan respectively. Tons and 18,500 yuan / ton. At the same time, the collection and storage work of the new year is about to begin. The unlimited purchasing and storage policies will increase the price of cotton, while the additional quotas and the policy of dumping deposits will make the cotton price negative. Weighing the impact of the two policies, the support of storage and storage is stronger, but the effort is obviously weaker than last year. With the increase in the number of thrown reserves in the later period, the pressure on the spot will gradually increase.

Expectation of lowering output The cotton has entered the picking period one after another. New cotton in Xinjiang, Henan and Hebei has already been purchased and the purchase price is about RMB 4/kg. The pre-rainy weather had different degrees of impact on most cotton areas, of which Xinjiang and the Yangtze River suffered less, and the Yellow River Basin suffered the most. According to data released by the Xinjiang Development and Reform Commission, total cotton production in Xinjiang in 2012 is expected to reach 3.2 million tons, 3.59% more than last year, accounting for about half of the country's total production. Last week, we conducted field trips to Liaocheng, Dezhou, Binzhou, and Dongying in Shandong Province. Rainy weather has a greater impact on the region, and the yield per acre of cotton has been significantly reduced. Currently, the number of peaches per cotton is 8-15. 25-30 times more than the normal year dropped by more than half. Most of the local cotton fields have been traced by water, some low-lying cotton fields have been almost completely produced, and the cotton fields of cotton fields with slightly higher topography have generally fallen. It is expected that the yield of seed cotton will be reduced to 200-250 pounds, which is 500 pounds more than normal years. Down from 30% to 50%.

The spot transaction situation has improved. The textile companies have received orders in succession. The market inquiry has obviously increased and the transaction has improved. September has entered the traditional peak season of the textile industry. Winter clothing orders have started to increase. Despite small and short orders, the demand for cotton in the market has shown signs of improvement. Jining, Shandong Province, recently 328-class Xinjiang cotton factory price of 18,600 yuan / ton, basically the same as last week, the current textile companies are still using the mining with the mining strategy, procurement tends to rationality, spot prices remain stable. The price of cotton yarn was basically stable, and the overall transaction volume was enlarged. The volume of the 32S and J40S yarns was relatively large. If the late spot market can continue to improve, it will have a positive effect on cotton prices.

Technically speaking, Zheng Cotton 1301 contract center of gravity continues to move up, has been successfully stabilized 19,500 yuan / ton of the platform, the average system was long arranged, the period price is in the forward high 19765 yuan / ton, if the latter in the warehouse with the amount of cooperation Can effectively break through this price, cotton prices can be opened up.

In summary, under the influence of policy combination of storage and storage and storage, the positive growth in the cotton spot market will drive the price steadily higher. Intricate policy factors make it difficult for Zheng cotton to appear unilaterally, or it will follow the spiral. The rising orbital operation.

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