US Cotton Prices Are Advancing To A High Of January.

Outlook: this week the market has eliminated the negative outlook for the medium term, and now returns to the neutral bullish mode.

The price has reached the upward goal, about 77.50 cents (10 year December contract). We may see that the price is showing a short-term consolidation.

However, strong external markets and weak US dollar may provide support for cotton to continue upward.

General merchandise is also rising sharply at this time, which can be continuous.

The next uplink target for the 10 year December contract is about 80 cents, if the key resistance level is 77.50-78.00 cents.

On the other hand, if the closing market is below 76 cents, the short-term bullish outlook will be invalid.

The United States - there are indications that cotton growth in the United States is still normal and may slightly exceed normal progress.

According to the weekly report of the US Department of agriculture and many other reliable news, autumn cotton will have a bumper harvest.

Cotton growing season is entering the late stage, which means significant changes or potential disasters will be reduced.

This is good news because cotton demand continues to be high and no delay in new cotton is welcome.

The shipment and delivery of cotton to be harvested has been well documented.

However, most new cotton is still waiting for two months to enter the market. Before selling more new cotton, cotton farmers pay more attention to observing the cotton situation through the finished delivery.

The best judgement we can make is that almost no growers are willing to sell cotton to cotton traders. This situation inhibits market prices from rising sharply before the cotton picking season, and the cotton that has not yet been signed will be sold after the picking season.

Tanzania - the official buying season allows the ginning merchants to purchase seed cotton in June 28, 2010.

The "indication price" of seed cotton (the price paid by cotton ginning to cotton growers) is fixed at 600000 Tanzania shilling / kg, which is not up to the expected price.

This once again has an impact on the purchase of seed cotton into the procurement centre, and the number of deliveries has so far been limited, because they expect higher prices.

The number of deliveries in August will increase because farmers need cash to pay for school expenses, while farmers need to spend money on Farmers' day in August 8, 2010.

The estimate for cotton production is still very large. The Committee estimated its output from 90000 bales to about 80000 bales.

Zambia seed cotton is slowing down to the market, and by the middle of August all seed cotton will be sold to ginning plants.

The final output is expected to be 40-45000 tons of lint, slightly higher than last year.

The system introduced by the Zimbabwe cotton processing association seems to work well. Only those who participate in the planned and planned processors can purchase seed cotton, so that legitimate seed cotton buyers can protect their market share.

The purchase of seed cotton is still in progress, and some cotton farmers have not participated in the plan, and their cotton can be sold to anyone freely.

The scale of production is still unclear, but it will not reach the initial target of at least 120000 tons of lint, estimated at 90-100000 tons.

The China Zhengzhou Mercantile Exchange reached a record high of nearly 19000 yuan per ton in September of 10, and is now on the top of the new critical support level of about 18400 yuan / ton.

However, although the market has been rising recently, the volume of empty contracts in September of 10 years has dropped sharply in this week, which shows that the current rally is mainly due to the shortage of compensation, so it may soon be adjusted.

The adjusted fuse may be a long-awaited "reserve cotton" re auction, which now appears to be a reality next week.

The government intends to auction 600 thousand tons of cotton in 2008 through CNCE.

Only textile mills are allowed to participate in auction.

Meanwhile, the mills complained that yarn prices continued to fall.

The main cotton growing areas are mixed.

The growth of cotton in Xinjiang and the Yellow River basins is normal, but excessive rainfall in the Yangtze Valley seems to be a fatal blow to cotton production.