MEIKO Futures: Cotton Price Is Strong And Weak, Investors Should Wait Patiently.

News, USDA December monthly report: 1, the United States.

The reduction of cotton production and the increase of factory cotton consumption resulted in a 65 thousand tonnes reduction in final inventory.

Cotton production fell by 33 thousand tons, mainly due to the substantial reduction in Texas, which offset the increase in the southeastern region. Based on the recent demand for consumption, the factory's cotton production increased by 22 thousand tons.

The export volume has not been adjusted, and the final inventory has been adjusted to 414 thousand tons.

2, the whole world.

Increasing cotton production and reducing consumption led to an increase in final inventory.

The output increased by 61 thousand tons, and the sharp increase in Australia and Brazil offset the decrease in Pakistan, Uzbekistan, Greece and the United States. The reduction in consumption was mainly due to a significant decline in cotton consumption in Pakistan and India.

The volume of trade has been reduced slightly. Despite the high yield of cotton, most of the southern hemisphere resources will not be shipped until 2011/12.

The final inventory is adjusted to 9 million 447 thousand tons.

The international market, along with ICE futures rose, the total price of China's main cotton imports rose 4 cents.

Despite the fact that the USDA monthly report has raised global cotton production and lowered consumption, it can not change the fact that foreign cotton resources are tight at present. Strong demand and shortages will continue to support high spot prices.

In addition, according to well-informed sources, Pakistan may ban cotton yarn exports from next year, which may be another reason for cotton merchants to hoard cotton.

Domestic market, the domestic cotton market has gradually improved in recent years, spot prices show a slow climb state, textile enterprises purchase enthusiasm has slightly improved, the market turnover has improved, cotton processing enterprises actively buy seed cotton, but cotton farmers reluctant to sell emotions are still strong, at present, it is difficult to buy volume.

However, the downstream is not optimistic. At present, the stock of cotton yarn in textile enterprises is constantly increasing, the pressure of production and marketing is great, the price of grey cloth has not stopped yet, and the order of enterprises is insufficient, and the shipping is still mainly based on price reduction.

Spot quotation. In December 10th, the price of C/A cotton in the US was 169.60 (cents / pound), and the general port trade delivery price was 28686 yuan / ton (calculated according to the sliding tax).

Australia cotton quotation is 165, discount general port trade port delivery price 27940 yuan / ton.

Uzbekistan cotton quotation is 196.05, discount RMB general port trade pick up price 33063 yuan / ton.

The quotation for West African cotton is 167.30, and the general port trade delivery price is 28327 yuan / ton.

The national cotton price A index was 27791 yuan / ton, up 72 yuan; the B index was 27071 yuan, up 60 yuan.

Market analysis, technically, the United States cotton high down, or the possibility of adjustment of the Japanese line, the strong support below 131.

Zheng cotton recently has been weaker than the outer disk, showing an interval oscillation trend, with a pressure above 27400 and a support below 26200.

Operation suggestion, wait-and-see is the main.