In September 14Th, Cotton Price Support Stood At 72.75 Cents And The Resistance Level Was 74.70 Cents.

New York Stage cotton - as the US Department of Agriculture issued the monthly report of bad supply and demand, this week's market (12 year December contract) fell below the 74.70-77.50 cents trading range. In September 13th, the market dropped to 72.75 cents, the volume enlarged, and there was a significant technological breakthrough in the market. However, the support position was expected to become a relatively strong supporting position near the low of September 13th and 71.50 cents.

The US Department of agriculture has reported 1 million cuts in cotton consumption in China last year and this year. Another major adjustment that deserves attention is India's 1 million increase in output this year, probably due to the improvement of monsoon prospects. With other small adjustments, the world's final inventory is up by 1 million 855 thousand packs. The world's inventory to consumption ratio is now 69%, an unprecedented proportion. Almost half of the expected final inventory is in China, so China's inventory to consumption ratio is very high, reaching 93%.

CFTC cotton pricing report shows little change. The bullish buying figures for the 13 contract in March were still few, reflecting the large number of cotton sales not yet available in 2013.

Technical aspects: short-term and medium-term trend downward. We believe that the market trend since May is a corrective nature. The next resistance level is 74.70 cents, the support level is 72.75 cents, and the minimum downlink target is 71.50 cents.

Pakistan - it has been reported that most of the cotton planting belts in Sindh and Punjab provinces have been raining last week. The rain is still affecting cotton fields throughout the country. The quality and quantity of cotton in Sindh province are all lost. Overall cotton production is expected to reach 15 million packages, although this view seems optimistic.

India drought fears have subsided. Parts of the northern part of Uttar Pradesh and central states have been raining since Thursday and may continue until next Wednesday. Rain in many areas is very beneficial to crops. The northwest part of the growing area, from the state of jarya and Punjab to Gujarat, will steadily decrease its rainfall this weekend. Next week, most of the area will clear up. Rainfall in the southwest coastline is similar, especially in the next week, where rainfall and coverage will decrease.

China Zhengzhou commodity transaction There is still no trading activity in the market. Daily trading volume remained at a low level, below the 100000 hand contract, with no change in the volume of the empty disk. So far, the price has remained in the two week trading range. CNCE transactions are also very light, and the spreads between exchanges have not changed much.

Imports of cotton began to pick up this week, mainly in recent demand. Mainly in China's domestic cotton auction, in history, this is the first time to sell old cotton and buy new cotton at the same time. However, the popularity of reserve cotton sales was limited, and the turnover rate reached 48.39% at the beginning of last week. Today, it has dropped to 19.65%. As of yesterday, the purchase of cotton reserves was only 1400 tons (200 tons of Xinjiang cotton and the rest of East China cotton) because the actual picking and cotton gin had just begun. This week, the Zhengzhou stock exchange certified stock redemption (some understandable) slowed to 4116 tons, the lowest level since the end of June 22nd. Polyester filament price increased by about 3.7% this week, the highest level since May 21st, and the growth rate of pure cotton yarn price is very small. This trend is very popular, but, if cotton To recapture some consumption, this trend must continue.