Cotton Rebound And Back Fall

Nearly two days we proposed

Fundamentals: at the beginning of 2011, textile enterprises generally had high inventory of raw materials. The sales situation of cotton yarn was not smooth, and the prices of raw materials continued to decline.

After the textile industry is faced with the adjustment of industrial structure and some small and medium-sized enterprises withdraw from the market, large and medium-sized textile enterprises will further expand their market share.

As cotton prices drop sharply, the macroeconomic situation becomes clearer and the initial inventory of textile enterprises is gradually digested, orders for large and medium-sized textile enterprises will gradually increase at the end of the year.

The US Department of agriculture's latest weekly export report shows that the current net sales of cotton in the United States are negative again for a period of more than ten weeks, and the default amount is higher than the new contract volume.

Meanwhile, India has announced an increase of 170 thousand tons of cotton export quotas due to the expected decline in domestic market consumption.

The technical side: Cotton near the station on the 8 day moving average, two days later, the air force counterattacked.

It shows that the weakness of cotton in the near future is hard to reverse unless there is substantial information.

Recently, the proposed rebounding short selling operation is still effective.