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ICE Cotton: Weak Fundamentals And Continued Downward Trend In Cotton

2011/6/28 16:46:00 53

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US cotton bottom picked up, market concerns Thursday planting Report

Overnight ICE cotton was once due to China.

Cotton price

The main contract fell to a limit of 116.92 cents per pound in December. However, the bottom of the bargain price eventually lifted the cotton price out of the weak and ended up slightly 0.07 cents to 121.99 cents / pound. On Thursday, USDA will publish the annual acreage report, which will reflect the impact of drought on cotton in the United States. The drought in the United States cotton region is still continuing. The crop growth in the United States is very poor. The record is far weaker than that in 2006. This will provide support for new cotton, and it is also the main reason for the rebound of cotton price to the limit price. It is recommended to pay attention to the weather in the United States and the planting report on Thursday.

Technically, on Monday ICE cotton bottom picked up, small Yang closed, cotton prices running under the short-term average, KD index in the low position has the trend of adhesion forming a multi head arrangement, although MACD index continued to be short, but its green column continued to shorten, cotton price declines slowed down, there were signs of stabilization, the proposal was cautious to drop ICE cotton, pay attention to the support of 118 cents / pound line.

On Monday, Zheng cotton was cut down by the Chinese government.

Import duties

The market panic has led to a sharp fall in cotton prices following major commercial and residential development, which has hit a new low since October 2010. Although the weakening of downstream consumption will make cotton prices continue for a long period of weakness, Zheng cotton is expected to overshoot and rebound today. In the case of ICE cotton picking up, it is proposed to leave the market on an empty basis and pay attention to the pressure level of 22700 yuan / tonne in January, which will continue to increase its holdings and break through 23000 yuan / ton pressure level.

Fundamentals

Weak from fatigue

Cotton continued downtrend

ICE cotton futures contracts varied on Monday. The December contract rose 7 points to 1.2199 U.S. dollars, down 322 points in July and closed at $1.62.

The sharp decline of Zheng cotton futures and weak demand made ICE cotton futures concussion lower and lowest hit the price limit. But after some bargain buying, the ICE cotton futures picked up and recovered slightly. The weak cotton demand side and the surrounding unfavorable economic situation continued to suppress cotton prices. This week, the market will pay attention to the report of the US Department of agriculture's annual planting area on Thursday. Before that, ICE cotton futures will continue to be weak.

Yesterday, the futures market generally fell, and the market atmosphere was heavier. Zheng cotton was one of the leading varieties. The low price of the cotton market was down sharply. The reason why the cotton market continued to be weak is that the textile demand in the lower reaches has not improved, the price of the spot market has been slack, and the price of the yarn has continued to decline, and the monetary tightening policy on the national macro level will continue. This is another direct reason for yesterday's downfall, which is that the import tariff of some cotton products has been cut down, so that the current cotton market is worsening. Today, Zheng cotton futures have fallen below the previous low level. After the crash, the market is expected to be stable and calm, but the weakness of the stock market has not changed.