Cotton Futures Are Seriously Oversold Cotton Prices Are Expected To Stabilize

Since August, the cotton price of Zhengzhou has been decreasing steadily. As of August 12th, the main contract of cotton futures was 1501 yuan, which was 14875 yuan / ton, compared with the August 1st low of 14010 yuan / ton, or more than 3%.

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< p > industry analysis shows that domestic cotton spot prices are showing signs of stabilization in the short term, and domestic inventories are still suppressed. However, the decline of cotton planting area and the slight growth of cotton will support the future annual contract price.

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< p > after three months' fall, < a href= "http://www.91se91.com/news/index_c.asp" > cotton futures < /a > has been seriously oversold, the longest decline since July 1959.

The global cotton market benchmark index ICE of the London Intercontinental Exchange (US) 2 cotton futures totaled 34% down.

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< p > the same period, < a href= "http://www.91se91.com/news/index_c.asp" > India > /a > commodity exchange (MCX) cotton fell by 18%.

A number of technical indicators show that cotton futures have entered extreme conditions from the oversold area, and the current trading conditions are rare for ten years.

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< p > the relevant agencies said that from the resources available for circulation in the domestic cotton market, the State Cotton stores will cease to be sold after August 31st. Although the stock of national cotton reserves is huge, the pressure on the formation of "a href=" http:// "www.91se91.com/news/index_c.asp" > price < /a will be reduced after the suspension of the sale. Secondly, the quota of imported cotton is insufficient, and the low price cotton in the international market is hard to flow into the domestic market.

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< p > external market, the US cotton has also risen slightly since August.

Peter Egli, director of Plexus Cotton Ltd risk management department, said the cotton market may temporarily hit bottom and farmers' sales will be reduced, and China may import cotton after the recent price collapse.

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< p > for the later cotton price trend, insiders said that because of the contradiction between supply and demand, cotton prices continued to rise in limited space, and cotton price volatility and frequency will further intensify.

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