How is the cotton price trend on June 21?
Today's latest cotton prices and trend overview:
Fundamentals:
1. Hongye Futures: Cotton futures morning comment 20170621
Intercontinental Exchange (ICE) cotton futures fell to a more than seven-month low on Tuesday, as expectations of a bumper new crop in major growing regions and a stronger dollar kept buyers on the sidelines. The most actively traded December cotton contract closed down 0.07 cents at 68.97 cents per pound, its eighth consecutive session of declines. Yesterday, the domestic Zhengzhou cotton main 09 contract fluctuated sharply, forming a U-shaped intraday move, while the corresponding open interest change formed an inverted U, finally closing flat versus the previous trading session, with the daily K-line forming a doji with upper and lower shadows. In the night session, it opened lower and moved lower, fluctuating in a narrow range.
Domestically, the reserve cotton auction floor price continued to fall, and the share of Xinjiang cotton declined somewhat recently, while the transaction rate was basically stable; at the same time, the share of spinning enterprises participating in the auctions remained high; spot prices were stable with a slight decline, and yarn and grey fabric inventories increased, with prices edging down.
Internationally, U.S. cotton production is expected to increase and export estimates were revised down, weather speculation is frequent, and cotton prices are highly volatile; in India, cotton (15265, 150.00, 0.99%) spot prices are at a high level, with downward pressure later.
In the long term, a sharp expected increase in global cotton planting area for the new year will weigh on international cotton prices over the long term; the loose domestic supply-demand pattern remains unchanged, cotton prices are under pressure and prone to fall rather than rise. Reserve auction policy remains uncertain, leaving Zhengzhou cotton stuck between gains and losses. In terms of operations, investors are advised to stay on the sidelines for now and pay close attention to changes in reserve auction policy. (Mysteel Information)
2. Nanhua Futures: Cotton prices may rebound in the short term
Domestically, national new cotton sales are nearing their end, spinning enterprises have few spot resources, the average transaction price and transaction rate of state reserve cotton auctions both fell, the share of spinning enterprises in auctions increased, May textile and apparel export data rebounded, domestic and international cotton yarn prices are inverted, and domestic yarn is relatively competitive, which is positive for cotton demand; internationally, weather conditions in major U.S. cotton regions are favorable for cotton planting and growth, new cotton planting is nearing its end, India's monsoon rainfall is progressing smoothly, and the decline in U.S. cotton export sales is bearish for cotton prices, but increased U.S. cotton export bookings for the next year are bullish for cotton prices.
Today's latest cotton prices
As of publication, the domestic cotton (Zhengzhou cotton) futures price index stood at 15242, the cotton main contract price at 15265, the cotton 1801 contract price at 15185, the cotton 1805 contract price at 15295, the cotton 1707 contract price at 15075, the cotton 1709 contract price at 15265, and the cotton 1711 contract price at 15010. In today's morning session, Zhengzhou cotton futures prices rose slightly across the board.
Today's latest cotton price trend
Cotton main 5-minute trend chart
Cotton main 5-minute trend chart
In today's morning session, the Zhengzhou cotton main contract opened lower and moved higher, oscillating upward. On the 5-minute trend chart, the Bollinger Band middle rail is trending upward, MACD formed a golden cross above the 0 axis and is pointing up, and the DIFF and DEA lines are converging; cotton prices may see a slight pullback, but the bullish market is still dominant at present, and the overall trend may still be mainly upward.