6.18: The Key Support Is 74 Cents.

Outlook for the market outlook this week, the 10 year December contract reached a 19 month high, but the trend of some indicators showed a negative divergence.

Therefore, in the short term, it is difficult to have a larger and longer upward trend on the basis of the current market.

Speculators / funds need to concentrate on selling large quantities of business.

However, the main trend of the market is bullish. As long as the price does not fall below 76.50 cents, corrective actions will take place as long as the market falls.

The key support is 74 cents, with resistance at 80.75 and 82.25 cents.

The number of recent withdrawal is less than expected, but in view of the current demand situation, the increase in the number of withdrawal is only a matter of time.

The United States - due to the fact that there are few actual cotton stocks in circulation channels in 2009/10, the current paction is limited to 2010/11's long-term crop contracts.

In recent 10 years, the strong contract in December has prompted growers to lock in prices and look forward to their considerable gains in the coming year.

At this stage, cotton growth is generally normal. This is a general situation. There are high temperatures in some areas and precipitation needs to be increased.

10 years in July, the contract was closed in an orderly manner, although the recent withdrawal of evidence is very large.

During the notice period, there appears to be no sharp rise in the July contract.

The China Zhengzhou commodity exchange closed for 5 days on the Dragon Boat Festival.

The contract between old cotton and new cotton is basically unchanged from last week.

CNCE opened nearly 200 points on the weekend, and the basic price of old cotton and new cotton was pushed up.

China's domestic cotton prices continue to strengthen, indicating tight supply.

Textile mill procurement action slowed down, because this holiday is three days (Dragon Boat Festival).

The demand for yarn in textile mills is good and export business is increasing.

In May, the import volume of 198000 tons was the largest in May.

At the same time, the weather in the cotton growing areas is very good, which may help China speed up the planting speed and save some delayed time.

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