U.S. cotton ICE Futures Exchange closed down

Monday (1.05) ICE Futures Exchange cotton close the United States fell, the strong U.S. dollar, stronger crude oil, the Chicago Futures Exchange fell from a high level of grain, resulting in weak ICE cotton. March contract was down 60 points at 48.31 cents per pound reported, in May contract was down 56 points at 48.72 cents per pound reported.

5, opened in March contracts, a strong dollar, the cotton market shocks down consolidation pattern of weakness, most commodity trading weak March contract dropping 46.90 cents a minimum. Crude oil on the red when the contract in March to amend some of the decline, climbed to 48.28 cents, but dropped back to 47 cents, and at this price continued sideways, before the close of an enlarged decline, to close at. Analysts said that cotton along with the external market is going at the same time due to seasonal factors and the demand for long-term impact.

Cotton will continue to keep up with other food commodities, especially food Chicago Futures Exchange, the farmers are making planting program in 2009. Although the cotton acreage in 2009 to reduce more, but cotton will continue in accordance with the Chicago Futures Exchange price movements of land and food competition, so the price seems to be equally attractive.

March cotton recent trading range of 40 cents in the low-end ended 50 cents. In 2008 the last three months the market is continuing to decline, the possible expansion of cotton consumption.

Index funds, in the second half of 2008 a significant reduction of cotton positions, may now be re-holdings long positions, so as to reduce the emerging market sell-off pressure temper.

Exchange report, ICE cotton inventory reduction on 6776 (480 pounds) package, to 763,336 the total package. Exchange report, ICE cotton open interest increased 141 to total 126,218 positions.