The Overall Decline In Cotton Did Not Change To &Nbsp; Capital Withdrawal From The Commodity Market.

Weak consumption made us cotton keep under $1, and hit another 9 month low.

Affected by the European debt crisis, weak consumption led to the difficulty of attracting cotton money in the ICE cotton market. The ICE cotton continued to decline overnight, and the main 1112 contract fell 2.62 cents to 96.94 cents / pound, 97 cents / pound. From a fundamental point of view, the decline in US cotton production is difficult to affect the pattern of adequate global supply in the 2011/12 year. Macroscopic The increase in demand for capital and the withdrawal of cotton from the weak cotton market are the main factors leading to the fall of ICE cotton. In this case, the short-term downtrend is expected to continue.

Technically, the main 1112 contract challenges 97 cents / pound support position and closes to the price. At present, cotton prices are far away from short-term average repression, and the EMA system keeps a good fall in alignment. Meanwhile, KD and MACD indexes continue to fall short, while MACD index green columns continue to grow. The downtrend is expected to continue. If the 1112 contract is closed at 97 cents / pound for 3 consecutive days, the downward target will reach 84 cents / pound.

Lack of basic support and international Cotton price Continued downward trend, on Monday, Zheng cotton again increased the volume of additional positions, but from the analysis of the post market analysis, the new increase was relatively concentrated, the overall popularity was weak, while the empty space was enlarged. The main reason for the increase was the increase in the number of shares, but the price increase was relatively small. We believe that the current downturn in consumption, textile enterprises sitting on 2 months of cotton yarn inventory, new cotton can be listed at the end of August, adequate supply and consumption downturn, spot cotton prices will maintain a downward trend, Zheng cotton will follow the challenge of 20000 yuan / ton integer strong support, the rebound can not be too optimistic, it is recommended that we keep a short idea to increase holdings of empty list, pay attention to 1201 contracts 22155 yuan / ton pressure level and 20800 yuan / ton supporting position. (Wanda futures Urumqi Sales Department Du Ying)

Cotton overall decline temporarily stabilized temporarily, downward trend unchanged.

ICE cotton futures fell sharply on Monday, down 262 points in December and closed at $0.9646. After the ICE cotton futures opened low, there was a high inflation performance, with a large fluctuation in the market, and the lowest price fell to the stop price. After that, some of them fell back, and finally closed on the small cross line near the cross star. Affected by the economic pressure, most of the peripheral commodities are weak. The euro zone sovereign debt crisis has spread to other countries, and the external debt crisis has continued, and the worries over the US debt ceiling have increased. This has led to the fact that the economic growth is still weak. Cotton demand is still not improving and changing. After a sharp fall in price, this position has shown some hesitation and recovery. There may be a small rebound adjustment, and the probability of a rising trend is not great. After that, ICE cotton futures will continue to be weak.

Zheng cotton futures The trend is stable, and stronger than ICE cotton futures, a sharp rebound yesterday, a substantial increase in capital position. On the basic side, spot trading is still slack, and the import price of forward contracts is far below domestic cotton prices, while textile enterprises are still not optimistic about cotton digestion. Although there is an expectation of US cotton production reduction, and the demand side and import prospects are not optimistic, it is difficult for the market to have a temporary impact on the market. The price of the three grade purchase of a large textile enterprise in Shandong has been reduced to 20000 yuan / ton, and the market atmosphere is still thicker. Under the basic situation, the upward trend of Zheng cotton futures can be regarded as the speculation of the fund's heat. The pressure on the cotton is bigger. The intensity and extent of the rebound are expected to be smaller. From the perspective of capital, the probability that the price will soon break down is not great.