Cotton Futures Rose To The Highest Level In Nearly A Month.

< p > > China a href= "//www.sjfzxm.com" > cotton < /a > futures rose on Friday, the main contract rose to the highest level since mid April, and the upcoming May cotton futures market was the last sixth consecutive days of gains.

Analysts said that the policy dislocation of cotton spot and futures markets had led to the difficulty of increasing the number of cotton warehouse receipts in the futures exchange, and that the prospect of soft futures could burn up contracts in September or even later.

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< p > cotton main 1309 contract of Zhengzhou commodity exchange closed at 20310 yuan per ton, up 0.84%.

The 1305 contract has continued to rise since the delivery month, rising 1.11% to 21805 yuan, up 6.57% since May.

The warehouse receipt data showed that as of May 9th, only 157 registered cotton warehouse receipts were registered, which was significantly below the normal level.

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< p > "cotton that can be registered as futures warehouse receipt has been very limited. As long as the policy of dumping and storage has not been adjusted, the situation of cotton futures and spot market disjointing will continue," said Cai Pingxia, founder agricultural products analyst.

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< p > due to the low domestic cotton prices and the high official purchase and storage price, most of the cotton flows into the government reserve.

According to industry estimates, excluding the amount of dumping and storage, the size of the national cotton reserves is still at a high level of about 9 million tons, which is enough for the domestic cotton demand for more than a year.

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< p > "recently, the government has increased the intensity of" a href= "//www.sjfzxm.com/news/index_q.asp > cotton reserves < /a >, and has repeatedly promised that there will be sufficient supply, and the market demand is not very prosperous, and enterprises adopt the strategy of buying and using." Cai Pingxia said, "at the beginning of the year, the proportion of the turnover of cotton reserves was still more than 60%, but now it has dropped to 30%, indicating that the enthusiasm of spot purchase is decreasing.

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On the other hand, due to policy restrictions, both cotton reserves and imported cotton can not be registered as warehouse receipts into the futures market, resulting in adequate supply of stock, but the futures market is facing an awkward situation of P.

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< p > * the margin problem is difficult to solve. * * < /p >

< p > prior to the announcement of Zheng Shang, the margin standard of cotton 1309 contract trading increased from 6% to 12% in May 15th.

It is noteworthy that the 15 day is also the last trading day of the 1305 cotton contract.

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< p > analysts say the move is clearly intended to prevent the 1305 market speculation from spreading to the following contracts.

In the absence of a price limit, the temporary increase of margin indicates that the regulatory authorities have realized the potential risks of cotton futures in the current sensitive period.

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< p > "theoretically, after the 1305 contract delivery, the 1309 contract has some risk of forcing the warehouse, because there is no deliverable cotton before the new cotton goes public.

This increase will not directly affect the market directly, it is mainly a warning function to remind investors to operate rationally, "Shanghai pointed out in its interim report.

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< p > but insiders say that to resolve the risk of cotton futures in the source, the key is whether the cotton circulation policy will be adjusted, allowing more cotton to be registered as futures warehouse receipts, so that the interflow channels can be more fluent, so that < a href= "//www.sjfzxm.com/news/ index_s.asp" > price < /a > more truly reflects the current market trend.

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