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ICE Cotton: Cotton Prices Fell Sharply &Nbsp; Continue To Empty Ideas.

2011/5/5 15:53:00 67

Weak cotton prices continue to fall due to weak economic data

Because of weak U.S. economic data and doubts about the global economic system, international commodity prices plummeted on Wednesday. ICE cotton was also hit by fund selling, and was down again in recent months. In July, the contract fell 6 cents to 151.51 cents / pound, while the new cotton December contract was supported by dry weather, and it only fell 2.78 cents to 125.59 cents / pound.

At present, the overall economic environment is weak, and the new cotton market in the southern hemisphere is on the rise. The supply is increasing, but the market is not good enough. The downtrend is expected to continue. The July contract will challenge the support position of 143 cents / pound.

Technically,

ICE cotton

In July, the contract closed in the shade and the cotton price failed to break through the suppression of the short-term average. The average system maintained a good drop in the queue. The KD and MACD index continued to decline, the MACD index green column was shortened, and the market declines slowly. Therefore, it is advisable to be cautious and bearish. It is expected that the July contract will challenge the support position of 143 cents / pound, and is expected to stabilize in this line.

Domestic cotton continued to fall under the pressure of weak consumption and market rumors raising interest rates, and the main line of support for the 26200 yuan / ton contract in September was lost. Cotton prices were hit by speculative selling and led to spot cotton prices.

At present, spot trading is still in the doldrums, the downstream market is still in the stage of de stocking, the market is absorbing cotton yarn inventory, and the short-term market will not have any positive results, which will lead to cotton prices continue to fall. The September contract will challenge the support level of 25300 yuan / ton. The support will fall to 24200 yuan / ton in November and support for the low point of the callback in November.

Cotton price

A sharp fall, a trend of short duration.

ICE cotton futures fell sharply on Wednesday, the July contract fell 600 points, to close at 1.5151 U.S. dollars, ICE cotton futures slightly lower, followed by concussion, July contract closed at a price limit.

The UK and US economic data are disappointing. In April, the UK's construction purchasing managers' index and the US Non manufacturing index in April were all lower than the forecast. The weak economic data made the commodity prices go down. Under the continuous decline of crude oil and grain prices, ICE cotton futures were under pressure and the market atmosphere was heavier. Although the price was temporarily above 1.5 dollars, the weak pattern was obvious, and it was difficult to keep the key price.

Yesterday, Zheng cotton futures rose slightly from the rebound of foreign cotton, but then continued to go down.

Market trend

Still weak, and finally fell below the 26000 threshold, the bears continued to dominate and the following fell.

On the basic side, Shandong Wei bridge lowered the purchase price of lint for several days. Today, the price of lint is reduced by 1000 yuan / ton, and the purchase price of grade three lint comes to 24000 yuan / ton, and the price of yarn continues to decline.

Domestic cotton upstream and downstream is still sluggish, plus the surrounding merchandise is also broken down continuously, the market bears a heavy atmosphere, Zheng cotton futures technology is still a short trend, the operation is still empty.