Zheng Cotton Rebounded Slightly 25365 Yuan

On Wednesday (May 18th), Zheng cotton rebounded slightly. The main 1109 contract opened at 25375 yuan / ton, closing at 25365 yuan, up 45 yuan compared with the 17 day settlement price.

The market is available for delivery in recent months. Cotton cutting Lack of concern and weather threat in the production area continue to rebound, which has a positive impact on the domestic market. As the domestic spot market is still warm for the time being, the overall environment of the surrounding commodity market is also unstable, and the external market is facing a key resistance of 158-160 cents. Whether the position can be challenged successfully needs further observation, and the frequent handover of gold face on the cotton futures market frequently shows its uncertainty on the direction of the future market.

Domestic cotton spot market continued weakness in May 17th Quotation Continue to fall, the market volume has improved. Internationally, the new cotton growth is still not optimistic. Because the delta floods are still raging, the drought in Dezhou has not been alleviated. A small amount of rainfall did not benefit Texas last weekend. Besides Dezhou, another area hit by drought is southern Georgia. This is the second largest cotton growing state in the United States. So the final number of cotton output is likely to decrease.

On the outside side, ICE cotton On the 17 day, it was helped to buy by investors. The market rumors said that there was not enough cotton to deliver at the expiration of the contract in the near future, leading to a surge in cotton prices. In July, futures contracts rose 3.89 cents to 1.5504 dollars per pound, while the new December contract rose 1.10 cents to 1.2113 dollars per pound. According to data provided by ICE Intercontinental Exchange, cotton futures held 147516 hands, the lowest level since October 2009. Allenberg, a major cotton trader, has cancelled its May cotton contract for deliveries, resulting in a sharp reduction in registered cotton stocks in the past few trading days. The market is worried that there will not be enough cotton for delivery in the month of maturity.