East Asian Futures: Cotton Is Down, And Intraday Volatility Is Bigger.

　　 On the 3 day, Zheng cotton 1109 contract opened high. It opened at 26585, the highest 27265, the lowest 26490, closing at 26660, up 450 points from the previous trading day (+1.72%). Cotton index Positions increased by 31830, with turnover exceeding 1 million 400 thousand. On the international side, the ICE cotton futures closed for second consecutive days on Thursday. Index ICE-3 month cotton contract CTH1 gained 5 cents, triggering a daily limit of 1.2634 dollars per pound.

Internationally, the news of India's restrictions on cotton yarn exports has largely boosted the market. Other commodity markets are strong, options related buying and scarce commercial accounts are also boosting cotton futures. Demand is also strong, and most analysts expect that 80-90%'s US harvest cotton has been sold and supply will be very tight in the first quarter of 2011.

In the spot market, China's cotton price index (328) is 26351 yuan / ton, up 102 yuan / ton. In December 2nd, the import cotton price index (FCIndex S) was 156.43 cents / pound, up 1.66 cents; 1% tariff 26370 yuan / ton, up 278 yuan / ton; discount sliding quasi tax 26755 yuan / ton, up 275 yuan / ton.

Cotton has been given priority in the current round of regulation. At present, the impact of regulation on the market still exists. Fluctuation range Larger. However, domestic cotton fundamentals have not changed, and the shortage has not been improved. Cotton supply is still tight, and spot prices continue to rise. With the release of the upper risk after the callback, cotton prices have gradually stabilized, and the latter trend will return to fundamentals, and gradually determine its reasonable price range.

　　 Judging from the trend of the disk, cotton prices opened higher today under the influence of continuous trading on the outside market. After opening, prices rose all the way, up to 27265, and then gradually dropped from the sharp drop in the stock index. Cotton prices continue to rise after breaking the bottom shock zone. The rebound has reached about 13%, and the operation proposal continues to hold.