Cotton Futures Closed Nearly Flat, Finishing Pattern Remains

U.S.A Cotton futures Thursday is close to the same level, and market participants will be waiting for tomorrow's announcement of the USDA's supply and demand report.

Dry weather has tightened the supply of cotton in the US, and the slow down of India's output has provided support for price declines. But the downturn is still worrying the market.

Knight Futures's Sharon Johnson said: "because the United States ranks among the world's leading cotton consumption per capita, the financial situation of consumers in the country is crucial to global cotton consumption."

ICE cotton contract in December fell 0.1% or 0.05 cents to 75.95 cents per pound.

Market participants expect a record high of inventory this year, even for the second and third largest producers in the world, India and the US.

After the first break of 77 cents in mid May, investors locked in profits and pushed prices closer to the flat.

The 2012/13 crop season, which began in August 1st, is variable. Traders are speculating whether China will release part of its strategic reserve of the 27 million largest package.

The Chinese government may take some part of it to prepare for the procurement needs of the crop year, which is now at the end of 2011/12. Stock Nearly half.

Whatever the final move, it may have a decisive impact on Global trade flows, especially if India crops are hit by drought.

The possibility of a longer drought is rising on Thursday, after the US weather agency said cautiously that the El Nino phenomenon that caused the last drought in India will almost certainly appear in the next two months and will continue until 2013.

The India authorities have also issued a drought warning for the first time in three years.

Cotton futures prices have risen 10% since the beginning of the month. The market forecast for the end of the stock market in the US Department of agriculture's Friday report may be larger than the actual situation.

Analysts expect the global final inventory of the 2012/13 crop to be 69 million packs, the highest level since 1960.

Main points: 1. As the output of India's new cotton is reduced, the export volume of India cotton in 2012/13 is expected to be 918 thousand tons, down 102 thousand tons compared with the previous forecast.

2, the market will focus on 10 days, the USDA will release the cotton supply and demand report, which is expected to be more profitable. 　

Early comment: Recently, the spot market is running better. ZCE warehouse receipts also show a sharp downward trend. Tight supply leads to stronger cotton prices, and CC 328B continues to rise; in addition, downstream cotton yarn. Cotton fabric enterprise Although inventory and capital pressure are relatively large, recent sales have improved slightly, which has given the market a positive confidence. At present, dumping is the biggest potential negative for cotton market, and the spot price of cotton will easily rise and fall before dumping. However, before the policy of dumping and storage has not been settled, the investors' mentality is unstable, and the positions and turnover of both sides are down. Investors are very cautious in their participation attitude, for fear that the policy of purchasing and storage will bring huge oscillation to the disk. Operation, Zheng cotton main 1301 contract, more single light warehouse carefully held, breaking 19100 stops; off-site funds short term participation.