Dezhou Storm Hits Cotton Damage Futures Trading

2010/10/26 11:05:00 46

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ICE cotton futures

After the storm hit the main cotton growing area of Dezhou, the fund and its price were closed.

Investor

Buying has sprung up.

Hail and torrential rains hit Dezhou, which accounts for about half of the total cotton harvest in the region.

This triggered a new round of speculative funds and investors buying, due to the impact of the storm on cotton harvest uncertainty.

Texas

cotton

The number of damage is about 5-40 million bags.

Fundamentally speaking, any loss of cotton in the United States will result in the purchase of existing cotton.

According to Thomson Reuters' survey of Chinese analysts, cotton production in the country will reach 6 million 450 thousand tons in 2010/11, much lower than the USDA forecast of 6 million 976 thousand tons.

Industry publication Cotlook expects cotton production in China to be 6 million 400 thousand tons in 2010/11, further supporting the view of Chinese analysts.

Potential analysis:

Cotton futures in December were trading on Friday. Because of the impact of the storm in the Dezhou area of the United States, the difficulty of harvesting cotton and the possible decline of harvest yield were the main reasons for the market buying. The market was buying up and the price of the market was rising. The electronic disk in the early Monday was still going up, and there was no room for further increase or limit.

Cotton supply and demand problems continue to deteriorate. After India confirms that the export is suspended, plus China's purchase of global cotton spot, the already tight relationship between supply and demand continues to be strained and moves in the direction of shortage.