Cotton Futures Daily: Cotton City Continues To Maintain The Idea Of Selling High

The increase in ICE cotton week was slightly down to more than a month low, as the US Department of agriculture (USDA) raised its global and US cotton production projections in 2014/15 during the monthly supply and demand report.

The most active March contract rose and fell after the agricultural report was released.

A 61.07 day low, then down 1.29 cents, or 2.1%, for 61.32 cents.

The December contract fell 1.53 cents, or 2.4%, to 62.43 cents.

The US Department of agriculture Monday raised the global cotton inventory estimate to 107 million 400 thousand bales (480 pounds per pack) as at the end of July, a record high, slightly higher than the 107 million 100 thousand package forecast in October, and the US cotton production forecast to 16 million 400 thousand packs, higher than the 16 million 300 thousand package forecast in October.

This led to an increase in US cotton inventories forecast to 5 million 100 thousand bales at the end of 2014/15, which was estimated to be 4 million 900 thousand packages.

On the operation, it is suggested that the idea of keeping ICE long cotton in a long term will not be changed.

Zheng cotton continued to rise slightly on Monday, and the main 1505 contract closed at 13315 yuan / ton, up 85 yuan / ton compared with the previous trading day.

On the spot, CC Index 3128B reported 14792 yuan / ton, down 3 yuan / ton compared with the previous trading day.

Cotton picking is coming to an end, cotton enterprises are cautious in purchasing, and the mainland subsidy policy is clear. After the introduction of the specific implementation plan of cotton producing provinces, the cotton farmers' mentality of selling will be greatly linked, the sale will increase and the corresponding spot lint supply will increase.

Operation, continue to maintain the idea of selling high.