Two Sessions Will Stabilize Prices, Say ICE Cotton Risk

As China's two sessions set targets for stabilizing prices and controlling inflation and suffered setbacks in commodity prices in the international market, the ICE cotton market speculation and consumer buying failed. The selling of multi profit margins led to a fall in cotton prices to a high level. Asia's session hit a limit. Although the intraday market rebounded, it fell again and ended on a downtrend. In May, the contract fell 7 cents to 207.14 cents / pound, and the previous high 208.93 cents / pound fell behind.

But USDA will announce its monthly report on Thursday, China and India. Cotton yield The market will be concerned.

Technically, the ICE cotton fell sharply to the support of the trial short-term average, although the average system maintained a good rise in the ranking, but the KD index had a tendency to form a short order of adhesion, while the MACD index red column began to shorten, and the market callback pressure increased. It was suggested that the ICE cotton should be carefully dropped and the support dropped from 185 cents / pound.

During the two sessions of the two conferences, the high level has repeatedly conveyed the determination of stabilizing prices and controlling inflation in 2011, seriously inhibiting the popularity of the commodity market and transmitting it to the international market. At the same time, it was rumored that the cotton yarn Market in the lower reaches was soft and empty, so that the price of cotton was reduced and the cotton prices were down sharply. In the short term, the weakness of the downstream market will continue, and the policy pressure will continue to play a role in the market. The weakness will continue. It is prudent to hold the Zheng cotton empty list and pay attention to the support position of the 1109 contract 30000 yuan / ton.

High ranking Cotton price Large downward adjustment of release risk

ICE cotton futures fell sharply on Tuesday. In May, the contract fell 700 points to close at 2.0714 U.S. dollars, although there was a rebound trend in the trading market, but it did not recover the decline. The final quick fall of the final market brought the market to a close down. Since the previous transaction was weak to the overnight limit, there was no new purchase in the market. A record rally has worried the market for the suppression of cotton consumption, and the market has temporarily stopped the upward trend. ICE cotton futures are expected to continue downward adjustment, and the magnitude of the recent shocks will be larger.

Yesterday, Zheng cotton futures launched a large adjustment market ahead of schedule. commodity Generally speaking, the domestic cotton price is expected to be weak due to the tightening policy, and the psychological loosening of the domestic spot cotton enterprises is positive. Shipments are positive, while the procurement of textile enterprises is cautious, and the spot market does not follow the price of cotton. In the case of the adjustment of cotton weakening, the rise of the external cotton pulling Zheng cotton futures is no longer sustainable, and it falls down in advance. This fall is like a sudden withdrawal of support and a big drop. It is suggested that empty single intervention and ownership should be maintained and pay attention to the support in September near 30 thousand.