ICE Comment: Cotton Futures Closed Higher; Driven By Speculative Buying

According to the news on March 7 in New York, ICE cotton (33090525.00, 1.61%) Futures closed higher on Monday, driven by speculative buying. However, analysts said that after the cotton futures rose again to a record high, profit taking dragged the cotton futures away from the high.

The index May contract closed 1.44 cents higher at $2.1414 per pound, with an intraday trading range of 2.1313 to 2.197, the latter being the limit up.

Preliminary data shows that the trading volume is about 28400, more than 10% lower than the 30 day regular trading volume.

However, the open position data of futures cotton is not consistent with the rising trend of the new high price. According to ICE Futures U S. Data shows that the number of open positions as of March 4 was 175284, only a small increase from the seven month low of 174074 as of February 28.

　　 distributor It said that cotton futures continued to rise, because the supply of contracts for old crops in May and July was very tight, but the contract for new crops in December was significantly discounted, because it was expected that the cotton planting area would increase significantly in 2011/12.

Analysts said that the cotton futures fundamentals remained strong, as stable demand supported the market.

They believe that high cotton prices will help improve the competitiveness of the United States in terms of planting area in the spring of 2011 compared with the grain prices that have risen sharply.

This week, the market will pay close attention to the global cotton provided by the USDA in the monthly supply and demand report consumption Data. After that, the market focus will turn to the planting forecast report released by the Ministry of Agriculture on March 31.