September 1St NYBOT Rising Trend

Brokers say that buying deals have shattered the view that cotton is about to adjust.

Analysts said that the rise in crude oil futures and strong U.S. manufacturing data pushed the US stock market to rise by more than 2%, providing support for the market.

In December, cotton gained 1.21 cents or 1.4%, which was 87.41 cents per pound, the highest closing price for the second month since the beginning of March 2008, and the trading interval was 86.01-87.90 cents, the latter being the highest in March 2008.

SFS Futures analyst Mike Stevens said cotton material will continue to grow.

Tuesday's market performance looks like a sign of a pullback, but Wednesday's trading shows that the rally is not over yet, and contracts have jumped in recent months and are keeping up all day, which should inspire many bulls.

In US commodity futures, cotton increased by 9.45% to become the best performing commodity in August.

Some analysts believe that cotton futures still have upward potential in view of the fact that the position of cotton futures is still lower than that in March 2008.

In March 2008, ICE cotton futures held more than 300000 positions.

The open position as at August 31st was 219593 hands, and the previous trading day was 217526.

Flanagan Trading Corp said cotton resistance in December was 87.50 cents and 88.65 cents, supporting 86.40 and 85.55 cents.

The volume is estimated to be 12243 hands, with 11086 hand call options and 8096 put options.