Why Are Similar Fundamentals Separated From Each Other After A Day?

Prices are sluggish, and spot prices for cotton have also declined sharply.

China cotton information network data

"Coincides with the coming of the eleven long holiday, the demand for capital hedge increases, and the" high cold "cotton price is facing the limit of the spot electronic disk. The limit of cotton futures is the result of some lucrative funds ahead of the profit.

Dong Shuangwei, chief futures analyst, said.

Judging from the current stage of yesterday, there are indeed traces of massive capital departure.

Zheng cotton all contracts yesterday held a sharp decline of more than 64000 hands, to more than 46 hands, and almost all of the reduction occurred in the afternoon session, while prices fell to a limit, suggesting that there are many concentrated departure.

On the spot side, in September 29th, the national cotton exchange market traded 29700 tons of electronic cotton matchmaking, which was reduced by 30000 tons compared with the previous trading day, and the order quantity (equivalent to the futures position) was reduced by 10560 tons, and the total order quantity was 144 thousand tons.

Xu Zhou, a futures analyst in East Asia, said: "in addition to the psychological reduction before the long holidays, the margin of futures trading yesterday is also the key to the sharp shrinkage of cotton holdings."

As of September 28th, since the beginning of September 28th, all countries in the world have sharply raised the margin ratio of customers, which is the second time since the Mid Autumn Festival.

In addition to cotton, companies also increased the trading margin ratio of other futures varieties, but the number of cotton on the most intense response, it seems that the cotton futures slump and the reasons for the breed itself.

It turned out that in September 28th, the state continued to issue 400 thousand tons of cotton reserves, and the auction business continued. The 30016 tons of cotton reserves were put into operation on that day. The weighted average paction price was 21514 yuan / ton, which was 262 yuan lower than the previous day, and the 328 level paction price was 22038 yuan / ton, down 336 yuan.

"The fall of the national reserve auction price may also affect the price of cotton futures."

Xu Zhou said.

But at the same time, he pointed out that in accordance with the operation rule of cotton prices over the years, cotton prices tend to be around November every year.

Since August, the state has launched a total of 1 million tons of reserve cotton sell-off plan, as of September 28th, the cumulative cotton market 621 thousand tons, the actual turnover of 611600 tons, the turnover rate of 99.8%, completed the 61% of the plan.

Some people in the industry expect that the remaining reserves should guarantee the smooth pition of the market before the new cotton market, and the fundamentals of the domestic cotton market will not change much in the near future.

Xu Zhou pointed out that it is too early to say that cotton prices have reached the top. After two months' 30% rise, the fall of cotton on Wednesday should be a normal adjustment before the national day.