Cotton Will Not Be Changed At High Altitude.

Wanda futures cotton (18795, -175.00, -0.92%) Du Ying, deputy director of Research Center

The weather in the United States is good for new cotton harvesting, and the government's continued lockout has made cotton farmers unable to obtain government loans and increased sales. On Thursday, ICE cotton was hit by trade selling in a quiet way. The December contract fell 0.55 cents to 83.16 cents / pound, the lowest in the intraday sale to 82.93 cents / pound. Despite the end of the US session, Senate leaders said the Democratic Party and the Republican Party reached an agreement to end the political crisis that has partially closed the government. But the new cotton market has increased supply pressure, short term market sentiment is difficult to recover, the weak will continue, cotton prices once again challenge 82 cents / pound strong support position trend.

Wednesday ICE Stage cotton A slight decline, the main contract in December is far from the short-term average line suppression, KD and MACD indicators continue to fall short of arrangement, MACD index green continues to grow, the technical side will continue to decline, December contract is expected to challenge again 82 cents / pounds strong support position.

On Wednesday, Zheng cotton failed to extend its previous strong pattern. Although the registered warehouse receipt of Zheng cotton was still zero, the effective forecast began to increase continuously, and the price of the 1311 contract reached 20400 yuan / ton. store up The price is flat, stimulating some enterprises' interest in entering Zhengzhou cotton market. However, the storage and purchase is still limited in time limit, and the storage progress is far behind the same period of the same period of last year. The long period of return will weaken the competitiveness of the national reserve. If the actual warehousing is more difficult, Zheng cotton will continue to attract new cotton to generate warehouse receipts. At present, the rapid import of cotton imports from the port shows that the inventory of textile enterprises is falling rapidly. It is difficult for India and the United States to supply large quantities of new cotton to the domestic market. This is expected to stimulate the government to speed up the dumping and storage. On the other hand, the sliding price of the new cotton and India cotton in the end of December is only 15600 yuan / ton and 15400 yuan / ton, which is significantly lower than the current spot cotton price. Therefore, with the passage of time, Zheng cotton will suffer from more and more policy pressure. The forward contracts will remain high and the ideas will not be changed, and there will be an empty contract represented by 1405 contracts.