Cotton Continues To Fall And Is Expected To Return To Low Levels.

US cotton futures closed up on Monday, while the sell-off of investors at the end of the month weighed down the new contract, and the tight supply of cotton to be delivered has boosted the contract in recent months.

ICE index December cotton futures CTZ1 fell 2.07 cents, 1.3158 U.S. dollars per pack.

Today, Zheng Mian 1201 contracts low and low. Low opened at 24120, the highest 24300, the lowest 23680, closed at 23740, compared with the previous trading day fell 620 points (-2.55%). Cotton index increased by 53282 hands, turnover of more than 1 million 40 thousand hands.

Spot market, June 13th China Cotton price The index (328) was 24551 yuan / ton, down 5 yuan / ton. In June 13th, the import cotton price index (FCIndex S) was 181.47 cents / pound, down 0.98 cents / pound; 1% tariff 29913 yuan / ton, down 160 yuan / ton; discount sliding duty 30263 yuan / ton, down 159 yuan / ton.

According to the latest global issue released by the US Department of Agriculture Supply and demand of cotton According to forecast report data, the US Department of agriculture has cut the global 2011/12 output, mainly due to drought in the United States, which is expected to further reduce cotton production, and also reduce global consumption. The main reason is that China's consumption will be downgraded under high cotton prices. On the whole, global cotton supply exceeds demand in the year of 2011/12, but the stock at the end of the year has picked up, but it is still at a low level of second in the past 15 years. The fundamentals of the world's cotton industry have begun to turn for the better. Domestically, the US Department of agriculture predicts that the domestic output of the new year will be restored, but this month's consumption has been lowered, and domestic cotton supply and demand in the future are expected to be better than in the current year. In addition, domestic cotton consumption and import volume continued to decrease in 2010/11, but this year the whole supply and demand Still in a tight pattern. Therefore, the probability of a sharp rise in cotton prices in the later stage is low, but it will remain at a high level.

Judging from the trend of the disk, domestic cotton continued to open lower today, and the price trend rose slightly after opening, up to 24300. However, after the announcement of the Statistics Bureau, there was a downward trend, and the trend began to fall.

After two consecutive weeks of rebound, cotton began to fall. If there is support at the bottom of the late stage, you can look for opportunities to bargain. If the bottom is low, consider a short opportunity. At present, it is recommended to continue to wait.