US Cotton Exports Soared, ICE Exports Strong

Monday (8.30) ICE us period Cotton rows Sentiment remained at its highest level in the past two years, mainly due to recent strong exports and tight cotton stocks, while Pakistan's cotton production has raised concerns.

On Monday, the October contract rose 0.34 cents, or 0.38%, to 89.37 cents / pound, the most active December contract rose 0.36 cents, or 0.42%, at 86.43 cents / pound.

On Friday, December, cotton reached its highest point at 87.30 cents, the strongest point since September 4, 2009, and cotton futures rose nearly 20% since July 20th.

Analysts say the United States cotton Export sales Strong, the end of global cotton stocks fell to the lowest level in 14 years, while Pakistan floods caused production worries, these positive factors to support cotton prices. Global cotton consumption continues to expand, and textile mills everywhere look for cotton for immediate production. The US economy remains fragile. Last year, the global economic recovery and recovery greatly stimulated cotton demand.

Demand has been active in stimulating US cotton exports to soar. In the week ending August 12th, net sales hit the biggest sales in 2010-11 of the year. Last week's sales report showed a 6% increase in sales.

ICAP, Jersey City, New Jersey futures Luis Rangel, vice president of commodity Derivatives Product Company, said that because of the recent tight supply, the export sales figures left a deep impression on people.

From August 12th, the US Department of Agriculture issued the supply and demand report, which raised the number of US exports from 14 million 300 thousand packages estimated in July to 15 million packages. The US expects to expand cotton exports, and the US output is expected to increase by 52% over the previous year. The reason is that the planting area is enlarged and the weather is almost ideal. The supply and demand report in August provided the latest support for the market.

Last year, the Mississippi Delta and southeastern regions harvested too much rain and reduced cotton production. Due to drought in spring, abandonment rate is high in Western Dezhou, and also leads to cotton yield reduction.

Although the price of cotton is high, the global cotton growers are expanding cotton production. However, due to the expansion of consumption, stocks remain tight. In August 12th, the US Department of agriculture lowered its global inventory of 4 million 300 thousand packs, or 8.6%, to its lowest level since 1996.

China is the world's largest cotton importing country, and China will expand its import of cotton to meet the needs of the textile industry. The US Department of agriculture has increased the import of Chinese cotton to 12 million 500 thousand bales in 2010-11 years, higher than the 11 million 650 thousand package forecast last month.

Pakistan's floods are rampant, and government officials say 16% of the cotton is destroyed. Pakistan is the world's fourth largest cotton producer and now imports cotton from neighboring India to make up for the shortfall. India is the second largest cotton producing country and exporter in the world. In the 2010-11 year, it is expected to produce 26 million bales of cotton, and the recent rainy season precipitation will increase the cotton harvest potential of India.

The increase in the US will ease the tight supply, but after the increase in exports, the inventory will be reduced to 3 million 200 thousand bales at the end of the 2010-11 year, and the US Department of agriculture forecast a 3 million 500 thousand pack earlier.

Analysts said that if global cotton problems, then the United States cotton is not enough to meet global cotton demand.

The number of ICE certified stocks dropped to 18690 packages, while the June 2nd certification stock has 1 million 80 thousand packages, which means that the US stock is only 1.7% of the inventory in early June.

Most of the cotton was sold in 2009, and the market was waiting for autumn cotton to enter the market.

Analysts say cotton prices may continue to rise in view of favorable supply and demand situations, and cotton may hit 95 cents in the past two months in December.

The US stock market shook down sharply on Monday, and the Dow fell more than 140 points, making the US stock market decline continue to expand this month. The disappointing data on personal income and expenditure made investors worried about the prospect of economic recovery.

The year August is about to end. From the beginning of the month, the Dow index has fallen by 4.4%, the NASDAQ has fallen by 6%, and the S & P 500 has fallen 4.8%. A lot of bad economic data dwarfed the positive impact of the increase in M & A activities, resulting in a low market in August.

At 16:00 on August 30th, the Dow Jones Industrial Average fell 140.70 points, at 10009.95 points, or 1.39%, while the Nasdaq composite index dropped 33.66 points, at 2119.97 points, or 1.56%, while the standard & Poor's 500 index dropped 15.67 points, or 1048.92 points, or 1.47%. {page_break}

ICE US cotton futures closing August 30th

    
        
            
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