East Asian Futures: Cotton Is Low And High, And Upward Pressure Is Blocked.

Intercontinental Exchange (ICE) cotton Futures fell on Monday, due to profit making and investor selling. The cotton market fell on the first day of the four trading session, due to a fall in the financial and grain markets. The ICE-12 cotton contract fell 0.75 cents, or 1%, at 72.19 cents a pound, trading at 71.21 -72.90 cents.

Today, Zheng Mian 1301 contracts go up and down. Opened at 19320, the highest 19580, the lowest 19235, closed at 19480, up 80 points compared with the previous trading day. Cotton index increased by 1172 days on hand, with a turnover of more than 100 thousand hands.

Spot market, China's cotton in July 24th price index (328) 18282 yuan / ton, up 9 yuan. In July 23rd, the FCIndex S index was 91.68 cents / pound, up 0.40 cents from yesterday.

Last week, the focus of the market was that the state reiterated the policy of purchasing and storing, indicating that the new year will maintain a policy of unlimited storage and purchase, and the price of the purchase and storage will be set at 20400 yuan / ton. Unlike previous ones, the purchase and storage will be started if the 3 consecutive working days are lower than the purchase price, and the deadline for the filming will be extended to 15 working days from the first 10 working days. Although these changes are of little practical significance, they show the determination of the State Reserve to insist on purchasing and stockpiling. Although the determination is good, the effect is still doubtful. It is precisely because of the large number of storage and purchase last year, resulting in the existence of high price difference between inside and outside cotton. After the end of the purchase and storage, the domestic cotton price dive was triggered.

In the new year, the global cotton industry is still in a loose supply and demand pattern. According to the latest report of the US Department of agriculture, the global cotton output in 2012/13 is projected to be 24 million 780 thousand tons; consumption is expected to be 23 million 730 thousand tons; the final inventory will be 15 million 760 thousand tons, and the inventory consumption will be 66%. Under the overall pattern of loose supply and demand, it is hard to see a strong rise in cotton prices. In the case of national storage and storage, the high price difference between inside and outside cotton will be normal. It can be predicted that a large number of cotton imports will enter the country in the new year. However, the price of domestic cotton will not have to be sold at a lower price if the domestic stock prices are high and the price advantage of imported cotton is high.

Judging from the trend of the disk, today, Zheng cotton 1301 opened lower, opened up after the rise, up to 19580, and then maintained high volatility, increased positions. Cotton has been many times before rebound They are all controlled by the pressure level near 19600. Today, they continue to drive low and high. They are still under the position, but they are still not up. It is recommended that bears continue to hold.