Cotton futures at China ZCE futures market modestly fell Wednesday. The most active contract CF701 opened at 13360 yuan and settled at 13305 yuan, down 50 yuan comparing to the previous session, following a trade range between 13375-13215 yuan.
Trade volume narrowed to 5658 lots and positions stood 12510 lots.
Some market people say earlier bearish news has been absorbed by market already. The market will try to float higher and make a slight rebound when there is no new pressure formed over the market.
However, the price needs financial and news support to perform a meaningful rally, otherwise the it will slip back again.
Now the prices between domestic growth and US cotton are very close. The price of US cotton futures will prop up home grown cotton, but the price does not have enough strength to make a significant rebound in short time.
On domestic cotton market, China national cotton index Cncotton A quoted at 13286 yuan per ton, up 15 yuan than the previous day, and Cncotton B at 12855 yuan per ton, rising 50 yuan on October 18.
On October 18, polyester staple fiber quoted at 11400 yuan, down 100 yuan, and Rayon staple fiber at 14280 yuan, falling 10 yuan from last session.
HZCE cotton in 229 grade offered at 13565 yuan, down 135 yuan.
New cotton purchasing price fell 0.02 yuan per kg,lint cotton price was about 12000 yuan per ton.
One lot is equivalent to 5 metric tons.
One US Dollar equals about 7.90 yuan.
Fibre2fasion, News Desk - China
marketing@alchempro.com
