Textile Mills Actively Purchase Cotton Spot Cotton Prices Rose "Properly".

With the slow and solid rise of ICE futures and the demand for cotton spot, the demand for ICE futures contracts at 75 cents in May is very active.

In the week ending March 28th, the ICE futures contract in May was 75.52-77.91 cents, and the textile factory actively replenishment.

The main reasons for active procurement in textile mills are as follows:

First, the spot basis ideal, the US cotton, Brazil cotton and other varieties of the base stimulate the spot paction, the US EMOT M level is much lower than the previous years level; two is the India cotton price rise, India cotton exports to China and the domestic consumption stability has made it a major participant in the cotton import in the second half of this year. Recently, the India textile mill has been actively buying cotton and West African cotton, the spot price of domestic S-6 1-1/8 grade cotton has also risen to 85.65 cents / pound; three, China's import demand is continuously flowing, and recently the United States has started to buy Cotton, which makes the prospect of Sino US negotiations optimistic.

The latest CFTC position report shows that as of April 2nd, the fund's net bullion increased to 8707, and the increase was mainly in December, while trade sales were concentrated in new year contracts, while May contracts and July contracts accounted for less than 20%, indicating that the May and July contracts did not sell too much pressure.

Last Friday (April 5th), the ICE futures contract broke 78 cents in May, and the next step is to advance to 80-82 cents.

Under normal circumstances, there will be at least 25000-50000 hands in the net fund, so the fund will continue to provide impetus for the rise in cotton prices.

Meanwhile, with the increase in the number of funds, the purchase of contracts in December will also increase, and the latter is expected to launch an attack on 78-79 cents. Whether we can break through this range depends on whether the Sino US negotiations have reached an agreement.