ICE cotton futures: The cotton rebounded in the short term and the market is still weak

Consumer buying pushed US cotton rebound overnight ICE cotton continued to rebound under the support of trade and consumer buying, with the main 1205 contract closing 1.6 cents higher at 89.08 cents/lb and once again standing above 88 cents/lb. At present, the fundamentals are in a vacuum. Global supply exceeds demand and consumer spending is weak. Although the long-term cotton price is restrained, China may issue additional quotas in April. This supports the international cotton price, and the short-term rebound may continue. Attention will be given to 88 cents/lb. Support level.

Technically, the May main contract of the ICE futures contract, Xiaoyang Daily, closed above 88 cents/lb and short-term moving averages, but the average system maintained a good short-term order, KD and MACD indicators continued to fall short order, MACD indicator green column Shortened, short-term rebound may continue, concerned about the May contract 88 cents / pound support.

Zheng cotton Masukura rose on Monday, but the bullish sentiment is clearly insufficient, and it is difficult to change the downtrend of Zheng cotton. Basic cotton imports continue to impact domestic cotton in large quantities. As prices of downstream cotton yarns, polyester, viscose, and grey fabrics continue to fall, the market demand is weak and sales pressures increase, spot cotton prices remain weak, and some cotton products are registered in the Zheng cotton market. Delivery of warehouse receipts kept the pressure of hedging and arbitrage selling. In the absence of both speculative and consumer buying, it is not optimistic about the rebound. Focus on the 1209 contract of 21,500 yuan/ton pressure. Backward pressure will continue to increase the holding of empty orders. The target will be 20,800 yuan/ton, and the 1205 contract target will be 20,000. Yuan/ton line. (Wanda ** Urumqi Sales Department Du Ying)

The cotton market rebounded in the short-term and could not change the market. ICE Cotton MX rose sharply on Monday. The May contract rose 160 points to close at 89.08 cents. The U.S. economic data released on Monday was better than expected, plus the expectation that the Chinese government will take measures to support economic growth. This has given a certain boost to the bulk commodities market including cotton; On the trading day, ICE Cotton ** stabilized after rebounding slightly. After yesterday's highs and highs, the rebound rate expanded. The rise in prices was supported by some bargain-hunting and ICE Cotton ** was around 90 cents, and domestic There is still a large price difference between cotton prices. This bargain-hunting may be due to the difference in cotton prices between China and other countries. China’s domestic demand for high-quality cotton resources is mostly collected and stored by the state. Cotton with a relatively low price has become a cotton textile company. Focused on the object of attention, ICE cotton ** has also accumulated a rebound after the sharp fall, some speculative buying and demand buying to buy low. However, this rebound is only a downward adjustment of the market, there is no significant upward opportunities, is expected to ICE Cotton ** will maintain consolidation near 90 cents.

Zheng cotton ** opened higher and higher yesterday, wearing a 5-day moving average, rose slightly. The domestic cotton price showed a slight decline yesterday, the spot market continued to weaken, the cotton yarn mill lowered the sales price of cotton yarn, and the current yarn product sales situation was poor. Due to the weak yarn conditions and financial pressures, the textile enterprises treated the purchase of cotton. More cautious, the current purchase of cotton not only did not increase, but showed a decrease trend. In terms of cotton cultivation, due to high cotton planting costs and low yields, current planting intentions of cotton are low, the intentional planting area in some areas is reduced by 20%, and even some areas are reduced by 40%. The increase in the prices of other agricultural products also encourages farmers to plant crops. The change has a certain supporting effect on the domestic cotton market, but it has limited impact on the short-term cotton market. Zheng Cotton ** 止 昨 昨 止 止 止 止 止 止 昨 昨 昨 昨 昨 昨 昨 昨 昨 昨 昨 昨 昨 , , , , , , , , , , , , , , 但 但 但 但 但 但 但 但 但 郑 郑 郑 郑 郑 郑 郑. (Haitong ** Zhengzhou Sales Department: Zhang Jianwei)