11 ICE Cotton Comment: Cotton Market Consolidation &Nbsp Down; Supply Is Still Tight.

Friday (6.11), ICE cotton market consolidation in the United States downward, after the cotton market driven by reduced supply and rose.

The recent cotton contract in July fell 0.97 cents, or 1%, to 81.54 cents a pound.

The most active December contract fell 0.13 cents, or 0.2%, to 78.94 cents a pound.

Although the market fell on Friday, cotton in July remained 6% higher this week.

The world's cotton stocks are gradually decreasing, and before the fall, there is a shortage of new cotton sources.

The United States Department of agriculture has confirmed the expectations of many market participants that the world's cotton supply this year is 13% short of demand.

The next year is still running short of 5%.

The world's cotton demand rebounded with the recovery of the world economy, which will stimulate the expansion of textile demand, and the demand for textile products has been reduced during the difficult economic crisis.

Analysts said that although prices were weak on Friday, it was difficult to find cotton sources at the present stage. Overnight, a small quantity of 19212 (500 pounds) of cotton was withdrawn from the stock exchange and sold to the spot market.

Nash Wilf, the four way risk management consultant, Andy, Ruian, said the market was just resting for a while and gasping for breath.

The real world is short of cotton, and the market will feel stronger next week.

China is the biggest cotton producing country and importing country in the world, as well as the textile manufacturing country. China's cotton prices are also strengthening this week. Cotton merchants all over the century are looking for available cotton.

The daily Cotlook A index, a barometer of world cotton prices, has been classified as "symbolic" most of the week.

It means that the whole world is short of cotton and can not compile general normal composite prices.

Peter cotton, director of risk management at Cong cotton company, said that since the middle of 90s, the supply of cotton has been very tense, and cotton mills are in urgent need of cotton, but new cotton can not enter the market very quickly.

Traders continue to pay attention to the growth of cotton in the United States next year, and cotton will be picked in autumn.

The stock exchange reported Thursday that ICE cotton stocks increased by 2439 (500 pounds) to 798487 bales.

The exchange reported that ICE cotton holdings increased by 2009 to 177007 hands on Thursday.

The exchange reported a turnover of about 41362 hands in cotton futures.

Option trading, call option is about 4760 hands, put option is about 3260 hands.

Closing price range

07 months 81.54 -0.97 81.49-82.70

October 78.53 -0.11 78.50-79.18

December 78.94 -0.13 78.61-79.15