Cotton Early Comment: Domestic Cotton Market Continued Stable, Cotton Enterprises Confidence Slightly Increased

Electronic matching:

In October 29th, the opening of the contracts was mixed, with a wide concussion and a final fall.

Whole country

In the trading market, the trade volume of cotton and cotton trading was 13340 tons, 2320 tons less than the previous trading day, and the order volume increased by 720 tons, with a total purchase of 62260 tons.

Two. Futures market

1. ICE: cotton futures rose in a weak trading session on Monday. Investors in Wall Street and other financial markets were sidelined by Hurricane Sandy.

Index cotton contract rose 0.19 cents in December, at 72.61 cents per pound.

2. Zhengzhou: the main contract of Zheng cotton is flat, the cross section consolidation is in the afternoon, the afternoon is low, the daily line is small, the forward contract volume is shrinking and the position is increasing.

The CF1301 contract concluded 23874 hands on the day, 698 additional positions at the end of the day, 168690 hands at the end of the contract, 30758 contracts on the CF1305 contract day, 5724 additional positions on the day, 147916 hands at the end of the day.

Three. Spot market:

Wei Qiao offer: three level: 19300 429:18500 (temporary suspension)

CC INDEX328:18705 yuan / ton, up 1 yuan.

Others: the average price of grade 527 cotton to plant is 16425 yuan / ton, up 3 yuan.

Fundamentally speaking, the overall atmosphere of the recent yarn market continues to decline in the early stage, and it is hard to change the situation. The overall price is stable and weak.

Soon to enter November, the traditional peak season in September and October also came to a close.

The outlook for the future market is still difficult.

On the spot, cotton seed rebounded cotton business confidence slightly increased, some cotton farmers realized psychological enhancement.

Cotton side, cottonseed low rebound, external pressure increased.

Four, the macro environment:

As of October 25th, ICE cotton inventory was 8798 bales.

US stock index futures closed lower on a shorter trading day, Tuesday's stock market closed due to hurricanes, and international oil prices fell due to hurricanes.

Five, operation recommendations:

The CF1301 contract slipped into a small line, and the daily line was reduced by the 5 day moving average. The end of the contract was weak on the 60 day average position, and the technical trend remained unchanged. The adjustment of the box under the hourly graph was broken down, and the center of gravity shifted down, and the short term trend continued.

Zheng cotton CF1305 contract continued to decline to narrow the line, the price continued to be weak before breaking down the previous day, the technology trend continued the weak pattern; the hourly graph suppressed along the average, while the short term trend continued to bear the order pattern, but there was support near the low front, and there was a possibility of repeated short term.

Operation suggestion: in the short term, the trend of weak trend is not yet confirmed.

Six. Trend testing:

1305 fall (neutral), wait and see

Arbitrage operation: buy January empty May, wait and see