Cotton Resistance In New York Is 117.6 And 119.8 Cents.

　　 New York cotton This week, the market began to face more pressure from Monday, following the extremely weak market last week. China has raised benchmark lending and deposit interest rates for the first time since 2007, accelerating the selling of funds. However, the sell-off is very short. Cotton prices hit a record high last Friday (the December contract was 119.80 cents) and Monday fell to 108 cents. The cotton price has recovered 3/4 in the current cycle. This is a remarkable achievement, reflecting the increasing potential strength and support.

In short, market It has fluctuated between 20 cents / pound since last Friday. The price difference is strong, for example, the price difference between March December and March 10 was more than 6 cents / pound. This represents a spread of about 5 cents / pound since the beginning of this month. The volume of cotton turnover has been good, lasting more than 20000 hands. The volume of empty disks is somewhat strange, and has been relatively small since mid September.

The spot market is still active. The macro level of technology has not changed. The main trend is still very optimistic. There are some indicators that the market may have formed an important top, but obviously more evidence is needed. The main supporting positions are 108, 104.50 cents, and the key price is about 95 cents. The resistance level is 117.60, 119.80 cents, breaking through this level. The big price is unknown.

In short, the short-term market will not be tame. The market needs time to calm down emotions, fears, rectify and return to a better balance. Until then, prices will continue to be volatile, but there may not be any recent turbulence.

Us - US export sales are still at a historic pace. Obviously, basically. demand Driving the market, American exporters continue to expand sales. Cotton traders need sufficient inventory and quantity to meet the demand. The price of cotton has reached a record high, which has provided a great opportunity for cotton traders. It is not surprising that in fact, the selling price of cotton is actually the producer level. However, with the improvement of the cotton picking progress, some of the cotton began to enter the traditional marketing channels. One thing is for sure, once the United States completes the final package of cotton ginning and classification, the sales season will end at some time early next year.

India - the past few days are quieter and rumors are decreasing. 5 million 500 thousand bales of cotton have been submitted for registration, of which EARC has issued 5 million 200 thousand packages of export licences. The remaining applications are either rejected or not qualified. The daily arrival rate of cotton is still slow, about 70000-80000 packs. The biggest problem now is how India controls delivery and transportation in November and December when exports begin.

The price of cotton futures on the China Zhengzhou Mercantile Exchange was supported by a good psychological demand, breaking through the two week trading range, setting a new high, reaching a level of 25000 yuan in 11 years in March. In January, May, the price difference widened in May 11, sometimes higher than 1000. In fact, the Chinese market is again very active this week. The newly released national reserve cotton has been sold out, and now only 3/400000 tons of cotton reserves are left. At the same time, China continues to purchase foreign cotton, including ELS cotton and organic cotton, from any place of origin, extending the delivery period to June 2011, and even Brazil cotton in 2011. The weather in every cotton growing area is bad, which affects the cotton picking progress. The market suspects that the output may be lower than the previous estimate of 6 million tons. There is no doubt that such hearsay means higher seed cotton prices and higher cotton prices. On the other hand, as a good example, the price of cotton yarn will continue to rise.