ICE Cotton: Buying Up ICE Cotton (8.4)

Worried about tight supply

Due to worries about tight supply, ICE cotton continued to rise, the main contract in December rose 0.46 cents to 79.80 cents / pound, the highest contract price 08 years since July, the market will test 80 cents / pound pressure level.

At present, the supply of the international cotton market is tight, and it will take some time to go to the new flower listing. In the case of the depreciation of the US dollar and the strengthening of external commodities, the strength of the ICE cotton will continue. The December contract is expected to exceed 80 cents per pound. The integer pressure level will continue to rise. The upward goal will reach 84-87 US cents / pound interval. It is advisable to keep the ICE cotton in a long way.

Technically,

On Tuesday, the domestic wide range of Zheng cotton rose slightly. As the market expected that the US cotton would be blocked by 80 cents / pound pressure level, it maintained a wait-and-see attitude.

But at present, the ICE cotton breakthrough 80 cents / pound will continue to go up a great probability, and with the sharp rise in domestic and foreign futures prices, the recent domestic spot prices have strong signs, which may stimulate the market long, Zheng cotton will continue to rise in technology buying and funding support, keep a long way of thinking to continue to hold more single, pay attention to the 1101 contract 16900 yuan / ton pressure level.

(Wanda futures Du Ying)

According to the news of New York on August 3rd, NYBOT cotton futures prices rose on Tuesday, due to the short term market fundamentals.

Cotton futures rose 0.66 cents or 0.8% to 84.51 cents a pound in October.

The most active December cotton contract rose 0.46 cents or 0.6%, closing at 79.80 cents a pound.

Cotton trading slowed in the summer, as the market was expected to fall at a large demand in the autumn.

However, last year global textile demand recovered with the world economy, making global cotton inventories consumed.

Andy Ryan, a risk management consultant at Fu Stone Company, said: "the demand for cotton is huge and the supply is limited. The fund acknowledges this situation."

However, thanks to favorable weather, the United States is expected to increase its cotton production by 50% this year.

Keith Brown analyst Keith Brown said cotton stocks are in short supply, but some cotton crops are growing fast in Texas, but there is still uncertainty.

He said that as long as there is uncertainty, there will be some room for cotton to rise.

Cotton is expected to rise by 80 cents in the estimated period.