Lack of price of cotton procurement prices of cotton shipped advantage of weakness

Last week, Zheng cotton from the lows, the major active contract CF1109, positions increased. U.S. cotton in July contract down by the 5 day moving average and trend line to suppress, the next break 170 cents, technical forms bearish price rebound of weakness.

    Recently, the U.S. cotton South Delta experience heavy rain, although rainfall caused localized low-lying areas of Central South cotton or even an outbreak of water flooding occurs, but, overall, is conducive to enhancing soil moisture, good cotton planting. Early, Southwest Texas cotton

Severe drought in eastern Texas and southwestern parts of the soil to "unusually dry" level.

    Recently, the domestic spot market price of cotton continued to decline. With the deepening decline in cotton prices in recent days, the majority of cotton enterprises Selling at Proper Price will be broken, the price is too low, the weight of the performance of enterprises are indifferent. Textile companies to buy the enthusiasm is not high, the sale of

The overall negative market performance. Recently, the textile industry to further declines in the procurement initiative, textile sales price is a bit confusing, prices have continued to appear down; the sale of the current enthusiasm of cotton enterprises is relatively high, but textile companies do not accept the high prices. It is understood that

Down a large textile enterprises in Shandong after the direct impact on cotton lint prices, the local lint offer further down, the local cotton market panic atmosphere. The cotton-producing areas along with other market traded lower cotton prices were light. In addition, the majority of current sales of cotton

Quality are better, but the lack of price and shipping advantages. With the continuous lower cotton prices, cotton enterprises purchase fatigue filling.
external battery pack
    Technically, the main CF1109 Zheng contract price of cotton, weak rebound. Above the downtrend line should be concerned about the repression, the bottom should be concerned about technical support 27000-26000, above technical resistance at the 29,500 line. Outlook downward because space is limited, should be bearish

Caution. Investors should be concerned about the recent sales of domestic lint prices and trading areas, the Chinese, the United States early sowing areas of cotton growing state, and national follow-up of regulatory policies announced.   

    Specific operation, for the speculators, Zheng empty cotton CF1109 contract technical support for one can refer to gain positions 27000-26000, or by reference to appropriate technical support to do more; selling hedgers may hold a single high-empty, can Cheng Cotton CF1109 contract

On the line as resistance to 29500-30800 to sell rallies, low cover, flexible hedging strategies; buying hedgers may contract with Zheng 27000-26000 cotton CF1109 line as a support to Buying the hedging strategy.