Weak Dollar To Boost ICE Cotton Prices Across The Board

Although the US cotton export weekly showed that as of 22, the export of new cotton was 53 thousand and 700 tons a week, lower than the market expectations, but the US dollar continued to weaken. At the same time, the market continued to focus on the shortage of deliverable stocks. The ICE cotton rose in the quiet, and the main contract in December rose 0.6 cents to 76.91 cents / pound, closing a 1 month high.

At present, the depreciation trend of the US dollar is very obvious, and the new cotton sales in the United States are in good condition, and the technical indicators are good for cotton prices. ICE cotton is expected to continue to rise under the support of multiple factors. The December contract is expected to challenge the pressure level of 80 cents / pound.

Technically, ICE cotton Zhongyang closed, cotton prices stabilized on the medium-term average, the short term average line turn upward upward across the medium-term line forming a multi headed trend, while KD and MACD indicators continue to rise in a row, MACD index red column continues to grow, technical indicators continue to support cotton prices up, December contract will challenge 80 cents / pound of the integer strong pressure level, it is recommended that the ICE cotton keep a long way of thinking do not change to continue to hold more.

Due to the increasingly close storage, the market has different understanding of throwing and storage. Zheng cotton on Thursday showed a pattern of reduction and storage. The 1105 favored contracts favored Zheng cotton.

It is expected that today's dumping notice will be issued. The starting price of 16500 yuan / ton will constitute a pressure on the spot, but the price will support new cotton.

Commodity red line further boosted ICE cotton

Last night, the international commodity market was on the bright side. The ICE cotton was lower by the US dollar and the surrounding favorable atmosphere led to a higher trend. It hit the high level since July 1st, and the market is expected to continue to expand in the short term.

The global stock market and commodity market investment climate, specifically, the statistics released by the US government showed that the number of jobless claims in the United States last week was 457 thousand, which was slightly lower than the expected decline in the US labor market. Undoubtedly, the German unemployment rate in the euro area dropped to 7.6% in July, and the profit of the euro area increased to boost the trend of the euro. China's stock market continued to rise. Undoubtedly, it had a great positive impact on investment confidence. On the basic aspect, the US cotton weekly export report showed that although the export of the US cotton contract decreased in July 22nd, the sales volume of the new year contract remained strong, reaching 48 thousand and 900 tons, and the demand for the market remained unchanged. The demand for ICE remained unchanged. On the international side, Europe and China are relatively well off, continuing to dispel worries about the US's published data and trigger a sustained depreciation of the US dollar, thereby boosting the market.

Zheng cotton aspect, yesterday

Weak dollar boosted, US cotton rose slightly

On Thursday, the ICE cotton contract opened at 76.31 in December and fluctuated between 76.25-77.44 and us. It was boosted by the weakening of the US dollar and the involvement of commercial buying. The trading volume was relatively light, pushing the market price up to 77.44 cents and closing at 76.91 cents, up 0.60 cents, to 0.79%.

US cotton December technology receives a Yang line star, has the long shadow, always receives the 60 day average line suppression, once again rushing to fall, also once again warned the rally to be over, indicating that the bull market control ability weakened, the rally likely to end, the short-term high consolidation or the possibility of returning to the downtrend is too big, pays close attention to 76 cent support strength.

In terms of fundamentals, this week's weekly export weekly shows that the US cotton has signed only 136 tons of land cotton this year, which is the lowest in the year, and the shipment volume is reduced by 9% compared with the front axle. However, the sales of new cotton in the United States cotton are still active. The net signing of the land cotton reaches 48920 tons in the next year. China signed the import of 113 tons of land cotton this year, cancelled 1815 tons, signed a negative 1701 tons, and signed 29166 tons of land cotton in the new year.

Domestically, in September, 3 consecutive days of reduced positions, from the previous 100 thousand hand warehouse, has been reduced to 74132 hands, the mood of forcing the warehouse has gradually dispersed, and the possibility of short-term adjustment continues to be large.

However, the January contract slightly increased, but the weak pattern did not change. The reduction in the stock price was upward. Obviously, the momentum was insufficient. Most of them had the tendency to turn to the May contract in the long term.

The rise of US cotton may push 16400 of the cotton stations on the stage. But before the 16500 breakthrough has been made, the empty list can continue to hold, and the entry point can be referenced to the 16550 line.

(Changjiang futures Wang Jian)

recently

ICE cotton futures rose slightly on Thursday. In October, the contract rose 11 points, closing at 80.68 cents. The most active December contract rose 60 points, closing at 76.91 cents.

Recently, the US business earnings and European sovereign debt concerns have been alleviated. Recent data show that US weekly unemployment claims have declined, and the US dollar has continued to decline. This has attracted speculative capital and technical traders to support the increase in the price of commodities such as metals and CBOT cereals. Affected by this, cotton prices have also seen a continuous rise. On the basis of the US Department of agriculture's sales report released on Thursday, the US cotton export demand is still relatively strong. The support of internal and external factors has made ICE cotton futures price continue to rebound, and the volume of energy in the past two days has been shrinking after the rebound, and the momentum of continued rebound has not been enough.

Domestic spot prices are weak, and lint prices in some areas have dropped from 200 to 300 yuan / ton. Cotton companies have been actively shipping, and voluntarily reduced prices, but few of them have received so many textile companies.

After the sharp decline of the price of cotton futures on a few days, the recent two days showed a steady consolidation. With the decline of the position, the problem of the 1009 contract was gradually resolved.

Recently, the focus is on the policy of dumping and storage. If the implementation of the policy of dumping and storage will be a serious blow to Zheng cotton futures, it will probably fall again.

Before focusing on the news, it is expected that the price of cotton futures will remain stable in recent days.