September 26, 2012 ICE Cotton Comment Dollar Strong Period Cotton Continues To Fall

Wednesday (9.26)

ICE Intercontinental Exchange cotton futures closed at a low level in October. The contract closed at 69.52 cents, down 1.29 cents from the previous paction. The main contract in December was opened at 72.33 cents, the highest 72.67 cents in the market, the lowest 70.98 cents, and finally closed at 71.02 cents, down 1.31 cents from the previous trading day, 13948 hands in turnover, 119645 hands in the open position, and the March March contract with a slight opening of 73.45 cents, the highest intraday price of the intraday, the lowest cent, and finally closed at the cent, which was lower than the previous trading day.

The US dollar was strong, the stock market was weak and fell to a seven week low. Cotton futures fell to a seven week low.

Sterling Smith of Citigroup said that the cotton situation is hard to please.

The global economy is still stagnant, which means that people have little extra money to buy clothes.

So we think cotton is likely to continue to fall, he said.

It is likely to drop to around 65 cents.

Cotton delivered in December by ICE Intercontinental Exchange fell 1.8% to 71.02 cents / pound, the lowest since August 2nd.

Gary Rains of INTL FCStone said cotton futures fell to a 6 week low as the dollar continued to appreciate.

The appreciation of the US dollar has weakened the attractiveness of American products to foreign buyers, such as China, the largest cotton consuming country.

At the same time, from a fundamental point of view, we believe that cotton will fall.

He believes that global consumption is overvalued, especially in China, the US and India.

But, he said, the market will not fall wildly to 50 cents.

The US stock market closed down on Wednesday, and the S & P 500 index has been down for fifth consecutive trading days.

Street protests by anti - fiscal tightening in Spain and Greece have raised market concerns.

The Spanish government is expected to announce its 2013 budget and economic reform plan on Thursday, and investors are still wondering whether the country will announce its application for assistance or not.

Spanish bond yields rose sharply on Wednesday, and yields on 10 - year treasury bonds rose 27 basis points to 6%.

September 26th state

Spot market SLM 1-1/16 "cotton (chroma 41, leaf chip 4, fiber 34) average price 65.84 cents / pound, the highest annual price in August 31, 2012 72.59 cents; the lowest price in August 1, 2012 65.79 cents; 1 3/32" cotton (color 31, leaf cuttings 3, fiber 35) average price 70.64 cents / pound.

In September 26th, 385 cotton bags were sold in the US spot market, and 88107 bags were sold this year, and 34363 bags were sold in the same period.

In September 25th, there were 16115 packages of NY certified stock and 807 packages to be certified.

In September 26th, the United States spot market Pima cotton, 2 (fiber 46) 118.50 cents / pound, 3 (fiber 44) 100.50 cents, 3 (fiber) 105.50 cents, 0 bags, the annual turnover 2465 bags.

The US Department of Agriculture announced the global adjustment price (AWP) of 64.15 cents on -9 27 September 21st.

In September 26th, the Cotlook cotton outlook index did not rise and fall, and the A index did not rise and fall, at 81.90 cents per pound.

In September 26th, China's cotton price index CC Index 328 nationwide weighted average price closed at 18665 yuan / ton, up 2 yuan.

CC Index 27 closed at 16358 yuan / ton, up 3 yuan, and CC Index 229 closed at 19591 yuan / ton, up 0 yuan.

In September 26th, China's cotton import price index (FC Index M) was 86.41 cents, down 0.90 cents.

In September 26th, Zheng cotton 1301 contract opened at 19460 yuan / ton, closing at 19395 yuan / ton, down 90 yuan / ton compared with the previous trading day, the highest price 19555 yuan / ton, the lowest price 19365 yuan / ton.

Turnover increased to 66286 hands, and positions were reduced by 3950 to 226374.

In September 26th, the Zhengzhou PTA1301 contract opened at 7640 yuan / ton, closing at 7626 yuan / ton, down 62 yuan / ton compared with the previous trading day, or 0.81%.

Turnover increased to about 1 million 6 thousand and 900 hands, and positions were reduced by 29736 to 541 thousand and 400.

In September 26th, the Dow Jones Industrial Average fell 44.04 points, closing at 13413.51 points, or 0.33%, while the NASDAQ (micro-blog) composite index fell 24.03 points, closing at 3093.70 points, or 0.77%, while the standard & Poor's 500 index fell 8.27 points, or 1433.32 points, or 0.57%.

In September 26th, the New York Mercantile Exchange delivered crude oil (90.10,0.12,0.13%) (90.15, -1.22, -1.34%) futures in November, down 1.39 US dollars and closed at $89.98 a barrel, or 1.5%, the lowest since early August.

December delivery of gold (1754.10,0.50,0.03%) (1754.40, -12.00, -0.68%)

The price fell by $12.80, or 0.7%, at $1753.60 an ounce.