Recent Developments: Cotton Temporary Wait And See

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

According to the National Bureau of statistics of China, the cotton planting area in China may be reduced by 2.3% in 2010 compared with 2009.

According to a report released by the US Department of agriculture in Islamabad, Pakistan's cotton production in 2010/11 is expected to be 10 million 550 thousand packs, up 6% from the same period last year.

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

Based on the above news,

[market trend at home and abroad]

Domestic: zhengmian 1101 contract opened at 16820 yuan / ton on Friday, the highest 16845 yuan / ton in the intraday market, the lowest exploration to 16600 yuan / ton, ending in the 16635 yuan / ton, turnover increased to 248628 hands, positions increased 676 hand to 175284 hands.

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.

From a technical point of view, 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 operation, we should wait and see for the most part, and propose short term operation within the day. At the same time, we should pay attention to the important position of the price near 16600.

Outer disk:

[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.