ICE Cotton Continued To Rise For Third Days, As Inventories Fell To Low Levels.

　　 Low inventory and rising grain prices support ICE Stage cotton rebound

Spain's heavily indebted Valencia region demanded assistance from the government, which aggravated fears of the Spanish government's request for a comprehensive bailout, which led investors to rekindle fears of European economies and industrial products fell on Friday. However, the price of grain in the international market continued to rise under the support of severe drought in the US producing area, and it supported ICE cotton. On Friday, the ICE cotton contract in December increased 0.31 cents to 72.94 cents / pound. Although ICE's low cotton stocks support cotton prices, the serious oversupply of global supply and the sluggish consumption will inhibit cotton prices, rebounding hard to change the sideways pattern, and continue to pay attention to the 75 cents / pound pressure level in December.

Technically, the ICE cotton was reported on Friday on three consecutive days. The main contract in December remained stable 70 cents / pound and the short-term average. The KD index at the high level once again formed the trend of multi headed arrangement, and the MACD index continued to rise in a row. Its red column growth and rebound will continue. The December contract is expected to challenge 75 cents / pound pressure level.

Rumours of Friday's throw away were renewed, and Zheng cotton fell to a high level. Although domestic resources tend to tighten at the end of the year, the European debt crisis has a reignited trend. The global economic downturn has led to a decline in the consumption of textile and clothing. China's export cost has been sluggish due to the high cost, and the yarn and grey fabric inventory has remained high. The terminal market has limited price bearing capacity, and speculation resources can hardly change the weak pattern of cotton prices. At the same time, if the rumor is sold, the resources will be unable to continue to support cotton prices. Therefore, although Zheng cotton is expected to continue to rebound, it is not suitable to catch up. It will continue to pay attention to the 1301 contracts of 19100-19700 yuan / ton in the horizontal area. When the cotton price rebounds to more than 19600 yuan / ton, it is appropriate to continue to increase the holding of the empty list, and take the 19700 yuan / ton pressure level as a stop loss. Cotton price Below 19400 yuan / ton short term support position, the additional empty single to 19100 yuan / ton line. (Wanda futures Urumqi Sales Department Du Ying)

ICE cotton continued to rise for third days, as inventories fell to the lowest level hit in February.

ICE cotton futures rose third trading days on Friday, boosted by a surge in the grain market, and the cotton stocks of the exchange fell to its lowest level in February, making investors worried about supply earlier. Cotton prices ignored the popularity of commodities and financial markets. A region in Spain called for gold aid on Friday, leaving investors worried about the European debt crisis, putting pressure on commodities and financial markets. Index ICE-12 cotton contract rose 0.43%, at 72.94 cents per pound, reaching a 73.29 day high in late trading. Trading volume is particularly low, just above 9000 hands. Some traders feel uneasy about cotton prices falling over the past three weeks, so they choose to leave the field and wait and see.

The most active contract has fallen into the 4 cent range since the beginning of July, but the price differential with the March contract narrowed sharply, reflecting that investors were worried about supplies earlier because of the decrease in inventories. The March contract premium narrowed on Friday to just 0.53 cents, a high 1.60 cents in 6, and over 2 cents in early June.

More than 5000 bags of cotton were abolished on Friday, bringing ICE inventories to a level of slightly below 78000 packages, the lowest level since February, and almost half of May's level. Most traders think inventory is down because cotton is shipped. China But the market is increasingly worried that inventories of cotton will not increase until new cotton is introduced later this year.