Determine the domestic commodity market trend of the second largest factors

Commodities futures markets and as A unit, but suffered a slight rebound in the domestic price control policy of intensive, this situation may be just a Flash in the pan. It is expected that the commodity of weak shock Yang pattern has been established with the regulation policy of further deepening, skyrocketing commodity futures market slump cut speculation will be made in the end.

By turnover and positions of the track we found that both the stock market or futures funds, both in the month of October has reached the peak. Our recent gains the most ferocious of cotton futures, for example, from early August to early November, the prices in a short period of three months from 17000 Yuan/ton soared to 33000 Yuan/ton, yesterday had dropped to 25515 Yuan/ton. Short-term volatility so large, we are not able to supply its markets normal pricing to construed, the only reason is the hot money too much, the style of a speculative copied, the slump in commodity futures have lost on the spot market price discovery function. It had to make the Government get out of the crack down on excessive speculation in the control policy.

In my view, there are two major factors determine the domestic market of the future:

First, the control policy will end commodity market making for the wind

Stabilize commodity prices, strike-excessive pumping machine has become a commodity futures market's main theme. Largest Futures Exchange recently taken: Cancel on the day of the open positions in futures trading fee discount; trading margin increased to 10 per cent; a moderate upward investors'behavior margins. From there we can see that on the day of the open-closed transaction fee half concessions will suspend all deposit and are raised speculation of cost effective measures.

In addition, the Central Bank of the "three magic weapon" is also set to launch in the near future, the deposit reserve ratio within the second month, the interest rate was always around the market, open market operations frequently wins the return funds, it represents the continued tightening of liquidity. This will make some time ago a well-funded commodity futures market liquidity to tighten up!