India’s 08/09 annual cotton output to 491-510 million tons of output

(Fundamentals): India is expected to 08/09 annual cotton production output to 491-510 million tons, lower than the previous estimate of 5,474,000 tons; textile foreign trade index in December fell sharply 20.01 percent, showing a marked decline trend, the current money-spinning enterprises tension, product backlog problems, end-market demand is not yet a turn for the better; the current domestic enterprises have to get some import quotas, by the expected increase in domestic imports and is expected to give the international cotton price will certainly support the recent rise has emerged to replace imported cotton pricing; domestic by the impact of the purchase and sale of warmer, but the market is greatly reduced the stock of high-quality cotton, but still not optimistic about the market outlook processors.

(Technical): by surrounding the decline in commodity markets and the impact of technology callback requests, NYBOT cotton fell Wednesday. Zheng yesterday once cotton continuation interval concussion trend intraday price once the period of 12000 to wear line, but quickly come down substantially days traded volume, trading at one time had 10,000, showing obvious speculation funds, the current state of the market as a whole has yet to reverse the trend, short-term shocks to maintain the trend of the market may be short-term operation in the range of 11600-11850.