ICE cotton futures contracts in the near future Monday that cracked 40 cents mark

Last week, ICE cotton futures contract recently cracked 40 cents Monday that the mark was soon to accelerate the decline Wednesday to 36.70 cents a minimum, the past six years reached a new low price. Thursday favorable external drive, trade buying intervention at the same time, cotton futures prices pick up, Friday continued to rise slightly. On the whole, is still filled with air. From the Cotlook A Index, 10, from the 14 fell to 55.70 of 53.15; FC Index M of 58.91 from 10 down to 14 of 56.74. If you do not see the economic situation in hopes that the cotton may be low again.

From the recent economic data, is the market’s worries intensified. 14, the U.S. Department of Commerce announced in October U.S. retail sales fell 2.8 percent, is forecast down 2.0 percent, and in September fell 1.3 percent; the day before, the Labor Department announced on November 8 when the week the number of applications for unemployment benefits rose to 51.6 Million people, compared with the previous week and 484,000 people. The European Central Bank last Thursday released the latest survey shows that professional forecasters to substantially lower the euro-zone economic growth and inflation forecast this year’s economic growth rate is estimated to be 1.2 percent, in the next two years is estimated to be 0.3 percent and 1.4 percent. These traditional textile and garment consumption of major economic slump, the global economy will inevitably have a negative impact on textile and garment industry is gradually reducing the demand for cotton consumption in the doldrums may be expected to continue.

Last week, crude oil fell below 60 U.S. dollars effective, straight 55 U.S. dollars, but OPEC’s production boost, the decline has slowed; and the rising dollar, to suppress the rebound in commodity markets. ICE cotton futures at the break through 40 cents, on Wednesday fell to as low as 36.70 cents, the lowest record-breaking, market sentiment brought about by fear. While cotton futures have fallen too far, but the further impact of 31-32 cents by the end of history, there is impossible. CFTC from the position, the cut-off on the 11th, ICE cotton futures positions further reduced, a substantial reduction of long speculative long positions, and the security units set short cut.

On the spot market, with the global decline in confidence in the economy, as well as the ICE cotton futures prices down gradually, the spot market, reducing the wait-and-see atmosphere, while spot prices due to higher, traders pay more attention to the high-priced contracts signed prior to the implementation问题. However, with the ICE cotton futures fell 40 cents, above some of the futures trade buying intervention, showed that the price of cotton dropped sharply, to attract some of the traders have been actively involved. From the recent weekly cotton export, domestic cotton price slump, and China recently signed a new import less, but in countries such as Indonesia and Turkey have signed import more U.S. cotton.

International stock markets fell sharply, forcing governments have introduced measures to stabilize the cotton market. China Shouchu stability, the effect of regulation and control policy seems to have surfaced; India minimum purchase price of the protection of trying to protect the interests of cotton growers, textile enterprises have been protests; Pakistan and state-owned trading companies to buy into the market; the Central Asian country of Uzbekistan are major exports to broaden sales Channel. U.S. commodities Credit Corporation (CCC) of the constant inflow of new flowers, an indication of the downturn, but also demonstrate the United States to protect the interests of farmers and the other from October 31, 2008 onwards, CCC of different grades of cotton AWP price calculation of the price adjustment , In place of the CCC to develop the method of calculating price, so that the cotton growers in foreclosure when they can gain more revenue.

Looking afternoon. Global financial summit held at 15, may be able to stabilize global financial markets and prevent the economy from sliding further and make some contribution. The trend of cotton still need to see more of the external variables. China’s strong policies to stimulate domestic demand, as well as possible restrictions on imports of good rumors contribute to the stability of the domestic market is, perhaps finally to stabilize the stabilized.