ZCE cotton futures market closed with mixed trends on Wed
02 Nov '06
2 min read
Cotton futures at China ZCE futures market closed in mixed territories on Wednesday. The most active contract CF701 opened at 13320 yuan and settled at 13355 yuan, rising 15 yuan from the previous session, following a trade range between 13375-13320 yuan.
Trade volume sharply reduced to 2454 lots and open interest stood 11888 lots.
With support from short covering, the market went higher after opening, and consolidated at high level for most of the trading time, finally settled at the session's second high point, with leading contracts volume sharply fell.
It is expected that the divaricating of those forward contracts will be even clearer, and price spread will extend wider with different fundamental factors.
As the cotton harvest is towards the end in Xinjiang, a bumper harvest is already set with the expectation of total production to reach 2.18 million tons, rising 11 percent from last year, setting the highest record in history.
China will invest 750 million yuan to support the construction of Xinjiang's high-quality cotton production base in the period of “the eleventh five years plan”.
In 2005, Xinjiang's cotton output totaled 1.95 million tons, accounting for 30 percent of the whole country's production.
On November 1, from the domestic cotton market, China national cotton index Cncotton A was quoted at 13251yuan per ton, down 17 yuan than the previous day; Cncotton B was offered at 12763 yuan per ton, 25 yuan lower from Tuesday; HZCE cotton in grade 229 was listed at 13200 yuan, down 10 yuan from the previous day.
marketing@alchempro.com
