ICE Cotton Economic Situation Bad Situation Is Not Good Cotton Price Downward

Bad economic situation and poor external situation, down cotton prices downward

ICE cotton futures fell sharply on Wednesday, while the December contract fell 0.78 cents to 70.56 cents. The latest release of data is bad. The US ISM manufacturing index was lower than expected in July. The global manufacturing index is weak, indicating that the economic development is slowing down and the economic outlook is poor. However, the Fed's Conference on interest rate which has attracted much attention has not brought any stimulus. The Federal Reserve decided to maintain the current benchmark interest rate unchanged, and did not extend the time to maintain very low interest rates, nor did it imply that QE3 was introduced. The drought is expected to cause rainfall in the grain growing area, which has also depressed grain prices and dragged down ICE cotton futures prices. The economic and external situation is not good. Cotton supply and demand will not improve in the short term, and the weakening of the economy will continue to restrain cotton demand. ICE cotton futures have maintained a trend of volatility, narrowing of the volatility, strong volatility in the short term or unilateral market preference.

Zheng cotton futures slightly lower on Wednesday, the lowest intraday drop to 18835, after the rise in the stock market and the performance of the surrounding commodity is rising again, driven by the increase in volume, the price has also rapidly increased to 19080. Spot market, China's cotton price index yesterday 328 cotton newspaper 18329 points, rose 6 points, the spot quotation has maintained a stable and slightly rising pattern, but the current market situation is still unclear, the supply and demand pattern is stable, the price of cotton is stable and the domestic and international economic surface is weak. This situation has been going on for quite some time. Such factors are not attractive, it is difficult to stimulate the enthusiasm of the market, the market has no news guidance, the domestic rumors are more, and the policy has not been released. There are uncertainties in the short term, such as policy surface and weather factors. It is only the price of speculation that the market has little effect on the market. If there is no irrational speculation, the market volatility is expected to be small. It is foreseeable that the future purchase and storage policy and the upcoming demand improvement will have a strong supporting role for the market, especially the purchase and storage policy, which will boost domestic and foreign cotton. Judging from the trend of technology, Zheng cotton futures are still weak, and there is no big upward trend. It is expected that the price of the peripheral commodities will weaken today, and the weakening of the outer cotton will suppress the Zheng cotton period. Operation, if there is a big fall, before the purchase and storage policy to do more, the current operation value is small, can hold a small number of single or simply wait and see. (Haitong futures Zhengzhou Sales Department: Zhang Jianwei)

ICE cotton fell more than 1%, because FED did not launch stimulus measures such as market expectations.

ICE cotton futures fell more than 1% on Wednesday, near the lows of the day. After the announcement of the Federal Reserve Board (FED) failed to anticipate its stimulus measures, the Fed warned the US economy was deteriorating.

The cotton market is also dragged down by the decline in the grain market. Soybean's strong rise has subsided due to the forecast that the rain belt will be affected by drought.

Index ICE-12 cotton contract CTZ2 closed at 70.56 cents a pound, down 1.09 cents from Tuesday, slightly higher than the low 70.53 cents a day. Today's Federal Reserve statement has driven the euro / dollar down and ordered.

Market worry clothing The lack of liquidity in the cotton market in the textile industry has resulted in a narrow price range. Traders say institutional investors are concerned about the trend of the grain market. The United States suffered from the worst drought in decades, affecting the growth of grain.