ICE Cotton: China Policy Has Led To The Continuation Of ICE Cotton Decline.

ICE cotton continues to fall

Due to market concerns, the Chinese government will curb excessive speculation, ban illegal pactions, improve price supervision laws and regulations, and increase penalties for illegal activities.

Affected by this, the US cotton continued to drop sharply under the pressure of multi position liquidation. It hit a limit once in the session, and ended slightly rebounded. In March, the contract fell 5.05 cents to 124.15 cents / pound.

At present, as the policy pressure continues, funds continue to flow out of the market, the short-term decline will continue, March contract 125 cents / pound support failure, the next target will be 113 cents / pound.

Technically,

In the domestic market, Zheng cotton continued to fall under the pressure of the sell-off, and its position was at a low level for nearly two months. Due to the pressure of policy and the continuous fall in cotton prices, the popularity of many people was insufficient and it was difficult to change the downward trend.

Near limit, the closing market will continue to adjust.

Last night, the international market remained weak, and most of the commodities recovered from the decline of electronic disk, but the trend was not optimistic.

11.7%, a new low of 18 months shows that the US inflation rate is lower than expected, and the real estate market is still in the doldrums, which makes the Fed's quantitative easing policy more supported. But in the short term, China's liquidity contraction, inflation control expectations and the latest executive meeting of the State Council are still hitting the market. The following is that China's policy regulation has also started to escalate. The State Council has said that "price intervention will be implemented if necessary", referring to the action of banning the acquisition of unlicensed and unlicensed cotton, strengthening the supervision of agricultural futures and electronic trading market, suppressing excessive speculation and outlawing illegal pactions. Moreover, the India Cotton Association has increased India's output to 6 million 60 thousand tons, higher than that of 5 million 600 thousand tons predicted by USDA, and the ICE cotton market has been in a short-term downward trend. Overnight international market, the latest economic data released by the United States, CPI was lower than expected in October, the core CPI is flat again, and new housing starts to fall in October.

Zheng cotton yesterday's limit opened, with the opening of the intraday market, commodities in the last market have been weakened, sealed in the limit plate, the main part of the main part of the table repeatedly intervened to do more than the bottom, but from the basic point of view, the short-term spot price reduction, the paction is cold, it is difficult to provide full support, investors need to be cautious when the policy escalation.

It is advisable to maintain short positions in the short term market.

(pioneering futures Dong Shuangwei)

Cotton is low and investors are worried that the Chinese government will intervene.

According to New York's November 17th news, ICE cotton futures closed lower in the past three weeks on Wednesday, analysts said, because China said it would curb excessive speculation, resulting in investors selling.

China's State Council said on Wednesday that it would curb price rises, curb excessive speculation, clamp down on illegal pactions, improve laws and regulations on price regulation, and increase penalties for illegal activities.

First Capitol Group cotton analyst Sharon Johnson said: "the Chinese market has led cotton prices to rise and now leads cotton prices down.

"The ICE cotton contract in March lowered 5.05 cents to 1.2415 dollars per pound, the lowest settlement price in nearly three weeks.

Preliminary data show that as of 1919GMT, turnover was 36119 hands, compared with 30 days mean 36808 hand low 2%.

Cotton is still the best CRB commodity index, and has risen nearly 65% so far this year.

Cotton's unliquidated contract fell to a three month low, as investors sharply reduced their positions in the process of falling commodity prices.