Cotton futures at China ZCE futures market closed significantly higher Tuesday, with the most active contract CF701 opened at 13510 yuan and settled at 13485 yuan, rising 70 yuan from the previous session, following a trade range between 13550-13420 yuan.
Trade volume reduced to 10940 lots and positions stood 15412 lots.
Judging from the session, the trade on ZCE futures was active with trade volume expanded in second successive day. It seemed some fund was interested in stepping into cotton market.
According to the monthly cotton report from China's National Development and Reform Commission (NDRC), cotton production was expected to reach about 6.50 million tons, up 800,000 tons from last year and half of the new crop harvest already finished.
In September, import cotton quotation at Asian maim ports was 57.19 cents per pound, less 0.1 cent than last month, falling 0.2 percent.
Taking account of one percent tariff, the import cost exchanged into RMB was 11838 yuan per ton, 2131 yuan below home crop; to calculate the price against floating tariff, the import cost exchanged into RMB was 13152 yuan per ton, 817 yuan behind that in domestic price.
On Oct 24, China national cotton index Cncotton A quoted at 13266 yuan per ton, up 1 yuan than the previous day, and Cncotton B was at 12795 yuan per ton, 5 yuan below yesterday, HZCE cotton in grade 229 offered at 13385 yuan, rising 5 yuan from last session, on domestic cottonmarket.
marketing@alchempro.com
