CITIC Investment: Cotton Short-Term Adjustment Of Investment Can Buy In Dips.

According to New York October 26th, the United States

Futures fell again on Friday and recorded the highest single week decline in mid May, because the market is worried about the tight domestic supply in the US, and the US harvest is underway, and the market is still short of demand.

The most active ICE December cotton settlement price was 72.42 cents a pound, down 0.43% on the day.

Prices are falling following the weakness of grain and soft goods markets.

Cotton in this cycle fell by 6%, eliminating last week's gains.

At the time, the market was worried that the supply shortage was filling empty positions, and cotton prices rose to close to 80 cents, the highest level since mid June.

So far, the market has found key support at 72 cents.

Traders speculated that buyers would return to the market and buy at these low levels.

Some people still expect prices to fall below $70 as the harvest proceeds.

There is a positive price difference in the market for second consecutive days.

The March contract was only 0.47 cents higher than the December contract, which was alleviated by concerns about the scarcity of supply.

Before the first part of the week in November, and the presidential election in November 6th, most investors sat on the fence.

On Friday, December, the contract volume was only 8350 hands, less than half the level of other trading week this week.

The market is still concerned about Hurricane Sandy, which is moving northward along the east coast, and is expected to land on the northeast coast early next week.

"Although hurricanes will not have a direct impact on cotton crops in the United States, they will have indirect effects on temperature, rain, wind and possible frost weather.

This kind of weather will accelerate the speed of leaf fall.

"Analysts at INTL FCStone said.

The latest data from the Commodity Futures Trading Commission (CFTC) showed that last week, speculators increased their net long positions close to 24000 hands, the largest increase since September 2011, reflecting the strength of short back compensation.

Pay attention to support 19300 below the operation. According to the spot price of cotton, 19000 of zhengmian has long-term buying value.

Operation recommendations, the first 19160 prices and more than 19300 single price increase to continue to hold.

The 19500 price can be more or less kept. It is only an adjustment in the near future.

stay

There will be no big adjustment before the general election and the eighteen largest.

Intra day short and medium term buying is mainly based on low prices.