ICE Cotton: Favorable External Boost Period Cotton Hit A New High

Overnight products were strong, and benefited from good fundamentals investors continue to buy cotton, 1 evening ICE cotton contract in December once again closed up 1.21 cents to 87.41 cents / pound, closing at 87 cents / pound pressure level, a new high of nearly two and a half years, and the strong trend, cotton prices are expected to continue to rise, challenge 90 cents / pound integer pressure level.

At present, the expansion of China's gap and the good sales situation of US cotton make the market ignore the problem of increasing cotton production. The purchase of funds has become the main driving force for the rise of cotton prices. But tonight, USDA will announce export data. If the data remain strong, cotton prices will continue to rise, otherwise the pressure of callbacks will be faced.

Technically, ICE cotton Zhongyang closed, the December contract broke through 87 cents / pound pressure level, the average system maintained a good long rise, while KD and MACD index tended to continue to be strong in overbought mode, the rally will continue, 87 cents / pound from pressure to support position, cotton prices will stand firm, support the challenge 90 cents / pound pressure level, it is recommended to pay attention to 87 cents / pound support for cotton prices.

Domestic cotton continued to shrink and lighten up and passively followed the rise. The market was afraid of high sentiment. Some of the Bulls took profits to close the position and suppressed Zheng cotton's rise.

However, due to the delay of the new cotton listing time, it is a foregone conclusion that some enterprises will replenishment to meet short-term demand. In the case of high cotton prices and new cotton becoming difficult to determine, the price of zhengmian is still difficult to attract the market of trade value preservation. It is expected that with the rise of ICE cotton, Zheng cotton still has the power and space to continue to rise. Today's 1101 contract will break through 17600 yuan / ton pressure level and continue to rise. It is recommended to continue to hold a small number of orders. In the future, it will not exclude the possibility of 1101 contracts challenging 18000 yuan / ton integer pass.

(Wanda futures Urumqi Sales Department Du Ying)

Peripheral commodity inflation ICE period cotton closer to 90 cents

Last night, I was stimulated by good news and data.

Overnight, in the wake of favorable economic data and the external market, the US stock market sharply increased on Wednesday. Although the employment data still showed that the economic recovery momentum was weak, the ISM manufacturing index, which was announced unexpectedly, rose unexpectedly in the morning, proving that the manufacturing industry is strong, prompting investors to rush to buy risky assets such as stocks and commodity futures. The US stock market has surged, and the US dollar has broken down with the recent depreciation of the US dollar, causing crude oil, industrial metals and soft commodities to go up sharply. The trend of agricultural products and beans is slightly weaker. At the same time, the White House strongly urged the Congress to approve the economic stimulus bill as soon as possible, coupled with the stimulus policy launched by Japan, and the recurrence of the international loose monetary policy environment will be the driving force for the new round of the market.

In terms of cotton, USDA is expected to report next Friday to reduce production expectations, the surrounding market is good, plus the current ICE cotton position is lower than the level of 08 March, and the surrounding atmosphere is good, and so on, the funds will continue to intervene and the upward trend will be maintained.

Zheng cotton yesterday strong consolidation in the vicinity of historical highs, digestion of nearly 3 trading days jumped pressure, positions continue to shift to May, the market maintained a good momentum, the fundamentals yesterday.

The external market will turn better, and the cotton industry will reach a new high.

On Wednesday, the ICE cotton contract opened in December at 86.01, fluctuated between 86.01-87.90 and the US. In early trading, it pushed the two-year high to 87.90 cents under speculative buying, and the improvement of the peripheral market situation further promoted the cotton price rise, shattered the expectation of the cotton futures adjustment, and finally closed at 87.41 cents, up 1.21 cents, to 1.40%.

Technically speaking, the US cotton harvest line in December will continue to close above the 5 day moving average. It will be strong and will not change. It will cover the film on Tuesday. It shows that the cotton will not be adjusted, but will continue to rush. The next target will be 90 cents.

On the international side, the strong US manufacturing data pushed us shares up 2%. The fall of the US dollar and the rise of crude oil all played an important role in promoting US cotton. The improvement of the economy and the fundamentals of rigid demand of cotton will continue to push us cotton to go well, so investors should continue to keep thinking of the US cotton.

On the domestic side, Zheng cotton continued to maintain a strong position on Tuesday. It has not been affected by the impact of the US cotton rush. The national cotton reserves remain high, and further support for Zheng cotton will be pushed forward by the external market today. It will hit 17660 high points in January, and will be tested 18000 in May.

On the operation, we should keep more thinking and keep more orders.

(Changjiang futures Wang Jian)