China'S Largest Cotton Production Decline, Zheng Cotton Borrowing To Rise To A New High

Although domestic commodity futures

With the US cotton futures hitting a record high again on Wednesday, Zheng cotton fell back yesterday, with the main contract closing at 1109.

In the spot market, China's cotton price index (CCIndex328) rose 72 points to 29902 points yesterday, and the current price difference between the 1103 contract closing price reached 3398 yuan.

For the reasons for the rise in cotton prices, the medium term analyst of Shanghai saw thunder from the basic analysis. "After the Lantern Festival, textile enterprises began to resume production, textile production and marketing returned to normal, and production orders were adequate, and the 3 grade cotton resources in line with the needs of enterprises were few."

In addition, according to China Daily News 17, China's largest commercial cotton production base, Xinjiang, produced nearly 2 million 480 thousand tons of cotton in 2010, down 1.8% from the previous year.

This production data is lower than the Xinjiang agricultural department's estimated 2 million 600 thousand tons in January.

Cotton production in Xinjiang accounts for about 40% of the country's total output.

See thunder said that the current cotton demand is expected to maintain steady growth, the textile industry's demand for cotton is more rigid.

After proper adjustment in the early stage, Zheng cotton is still showing a trend of upward shock.