MEIKO Futures: The US Cotton Rally Is Strong, And Is Expected To Challenge The Former High.

Industry data, the US cotton export weekly (3-9 December) week, the 2010/11 US cotton net export contracted volume of 43 thousand and 200 tons, 41% less than the previous week.

The net export volume of us upland cotton in 2011/12 was 13 thousand and 100 tons.

The export volume of us upland cotton exports is 69 thousand and 200 tons, a decrease of 6% over the previous week, an increase of 44% over the previous four weeks average.

2010/11 US Pima cotton net export

News, according to foreign reports, by the weather and cotton prices fell, last week (December 6th -12), India new flower listing reached 264 thousand tons, an increase of 23.5% over the previous week, the highest record since 2009/10.

As of December 12th, the total number of new flower coming up in India this year was 1 million 457 thousand tons, an increase of 0.2% over the same period, of which the Southern cotton producing area increased by 27.3% over the same period last year.

Judging from the current situation, cotton production in India is expected to reach a record high this year. In the coming months, the volume of new flower listing is likely to increase further. It is expected that the India government may relax cotton export restrictions accordingly.

The international market was affected by the decline of ICE cotton futures prices. The price of China's main ports of imported cotton fell one after another, of which Brazil cotton fell the largest, exceeding 500 yuan / ton.

Because Moodie is likely to downgrade Spain's credit rating, the US dollar index has risen sharply, and most commodities, including cotton, have generally fallen.

In addition, from the perspective of the downstream consumer market, the retail prices of clothing in developed countries such as Europe and the United States are hard to rise, and the inhibitory effect on cotton prices can not be underestimated.

Domestic market, domestic cotton prices continued to rise slightly yesterday.

At present, cotton growers' expectations for seed cotton prices have improved, and they are not eager to sell before the Spring Festival.

After a period of consumption, raw material inventories of some textile enterprises have been significantly reduced. Although enquiries have increased, there is still little strength in spot purchases due to capital constraints and hedging needs.

Spot quotation, December 16th, C/A cotton in the United States is 176.20 (cents per pound), RMB 29794 yuan per ton of general port trade price (according to slippery quasi tax calculation).

Australia cotton quotation is 170.77, discount general port trade port delivery price 28882 yuan / ton.

Uzbekistan cotton quotation is 201.24, discount RMB general port trade pick up price 33933 yuan / ton.

The quotation for West African cotton is 174.67, and the general port trade delivery price is 29537 yuan / ton.

The national cotton price A index was 28169 yuan / ton, up 53 yuan; the B index was 27383 yuan, up 47 yuan.

Market analysis, technically, the United States cotton strong rally is expected to challenge the front line, compared with the external market, Zheng cotton due to the weak policy weakness, concerned about the pressure above 28200.

The operation suggests that we should rush to leave the field.