Reinhard: Cotton Contract Support For December Is 122-121 Cents.

When the daily graph is impressive, the monthly chart trend is stronger.

In modern history, the cotton market has never seen such a big increase, especially with such rapid growth.

At present, monthly reading is at an extreme and rare level.

In August, the market rose 7.50 cents / pound, in September the market rose 16 cents / pound, in October the market rose 23.50 cents / pound, November (November 4th November 4th closing price) only four trading day market rose 15 cents / pound.

To what extent can the cotton market go up? Market energy will eventually dry up, prices may drop sharply, and speed will be very fast.

However, due to some problems, China's exchange rate is rising and spot trading is active, and the market will continue to strengthen for the time being.

In the medium term, various index funds will be re positioned.

At current prices, cotton is on their sales list.

Technical side: same as last week.

The price may be out of the final stage of Daniel, but there is not enough evidence that the market has formed or is forming a top.

The next target for the market is 149.50 cents, followed by 155 cents (10 December contract).

The key support is 130 cents, the key supporting position is 122-121 cents, and the key support is about 114 cents.

Us - as of October 29th, the number of US exports is greater than any other year.

In just 13 weeks, the number of delegate has reached 11 million 730 thousand packets, equivalent to 76% of the US Department of agriculture's set target.

Strangely enough, the number of shipments has lagged behind, though the number of classifying has been very large.

As the 2010/11 end of the year inventory of 2 million 700 thousand packages, has been very low, therefore, the United States Department of agriculture will not substantially increase the number of exports in next week's supply and demand report.

India - the international market finally came to India cotton exports. The first batch of India cotton began to enter the export market in November 1st.

Now, export logistics monitoring has become the main focus.

The price is still strong, but export business will basically stop in the next few days as India is celebrating Diwali.

After the festival, we need to observe whether the cotton processing plant will continue to deliver the goods according to the low price contract and delivery time.

If a large cotton processing plant fails to execute the contract, it will surely cause serious consequences to the reputation of India's cotton market.

I wish all the India friends a happy Lantern Festival!

China - cotton prices are high and all contracts closed at 31000 yuan / ton.

At present, the reasons for the rise in cotton prices in the Zhengzhou futures exchange are the same as before. That is, the gap between supply and demand has been widened sharply, accompanied by a decrease in the volume of empty stocks. The reason is that the market is short.

If this happens again, the market will soon enter a consolidation market.

The demand for imported cotton is still active, especially in the near future. In addition to the price of imported cotton is lower than domestic cotton, the textile factory also strives to use up the import quota before the end of the year. If the quota is not used up this year, it may no longer allocate the quota next year. The China Development and Reform Commission recently estimated that the cotton planting area decreased by more than 5% this year compared with the previous year, which is larger than the estimate given by the US Department of agriculture's latest report.