Recent Developments: Cotton Temporary Wait And See

International: US Department of agriculture data show that as of May 23rd, the United States cotton Flower (16635, -210.00, -1.25%) planting activities completed 60%, completed 47% the week before. According to China

National Bureau of statistics, 2010 China Cotton planting area may be reduced by 2.3% compared with 2009. US Department of agriculture in Islamabad

The report shows that cotton production in Pakistan is expected to be 10 million 550 thousand packs in 2010/11, up 6% from a year ago.

Domestic side: on the policy side, India has allowed cotton exports again, and China has issued 800 thousand tons of imported cotton quotas.

Excessive speculation and so on. On the basic level, Textile enterprises Raw material inventories have increased, wait-and-see sentiment has increased, and market turnover has declined. For all that

Due to the gradual decrease of lint resources, the tight supply pattern has been fundamentally changed.

According to the above news, cotton basic information is temporarily biased.

[market trend at home and abroad]

Domestic: zhengmian 1101 contract opened at 16820 yuan / ton last Friday, the highest 16845 yuan / ton in the market, the lowest down to 16600 yuan / ton.

At 16635 yuan / ton, turnover increased to 248628, and positions increased by 676 to 175284.

Abroad: the US cotton continuous price closed at 80 cents, or 1.29 cents, or 1.59%.

[technical analysis]

Inside: from the disk, cotton 1101 contract price fell sharply after opening last Friday, and volume and position increased. Technically

The long-term trend of cotton is still strong, and the overall trend in the near future is still regional shocks. In terms of specific operations, we should wait and see for the most part and suggest that it be short in the day.

Line operation, while paying attention to the important position of price near 16600.

External market: US cotton prices continue to shake up recently, and pay attention to the important position of prices near 80.70 and 79 cents.

[today's operation recommendation]

On the basis of wait-and-see, aggressive short-term traders can choose the operation of bargain buying, while paying attention to the important position of prices near 16800 and 17000.