0224 Cotton Morning Comments

(Fundamentals): domestic cotton production is expected this year for 7.83 million tons, as of February 18 a total sales of 2,314,000 tons of new cotton year on year reduction of 1,770,000 tons, while the customs data showed, as of January 2008 a total of 548,000 imported cotton tons, up 404,000 tons to reduce, or 42.4 percent, in 2008 less than the domestic textile enterprises Procurement 2,860,000 tons, 2,174,000 tons year-on-year reduction, 43 percent decline; has been completed and is currently 78 percent, with the coming to an end, policies on the cotton price support will be gradually weakened, and prices will return to the market on its own regulation.

(Technical): by the stock market and the impact of energy futures fell, NYBOT cotton down Monday. Zheng yesterday concussion higher cotton extension posture, shrinking traded intraday positions significantly reduce the current spot market strong support, but the market still do not have the kinetic energy of up dropped, the recent involvement of caution was necessary.

(Operation recommendations): short-term oriented.