ICE Cotton Futures Remain At 74.50-77.10 Cents Recent Range

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< p style= "TEXT-ALIGN: left" > ICE < a href= "//www.sjfzxm.com/news/index_cj.asp" > cotton futures > /a > - this week March 13 contracts remain at the recent interval of 74.50-77.10 cents.

Wednesday's agreement to avoid a fiscal cliff brought some excitement to the market.

But the momentum is fading quickly, and a href= "//www.sjfzxm.com/news/index_c.asp" > cotton > /a > and most other commodity markets are beginning to reverse because of the strong US dollar.

In the remaining weeks of the week, the market performance is basically neutral, and there is no decisive action.

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The P (December 24th) Commodity Futures Trading Commission commissioned a report showing that capital management (speculative) investors increased their holdings by 2413 to 3153.

Now they hold a net long position of 25828 hands.

There has been no major change in the latest CFTC cotton pricing report.

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< p > spot demand is quite active and demand comes from many destinations.

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< p > technical side: short term trend is neutral, medium term trend is upward (but momentum is weakening).

The resistance level is 77.10 cents, followed by 78 cents (key).

The support level is 75.00-74.50 cents, followed by 72.50-71.25 cents, and then at 69.79 cents (key).

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< p > China - in the last trading day of 2012, the 13 year May contract fell to a six month low, breaking down an important supporting position of 19000 yuan.

Short term prospects turn to bearish.

However, the recent downward trend has neither expanded volume nor increased volume, and prices have continued to fall, and now fall to the lowest level in a year.

Therefore, the price is still likely to be callback to the 19000-19250 interval.

If the closing price falls below 18920, this view will be ineffective and will open a channel for the contract to fall to 18325 lows.

In September May, the contract spread in September was returned to the futures premium in 13, but still far below the full cost.

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< p > reserve procurement progress is stable.

By the end of 2012, the total amount of acquisition was 5 million 180 thousand tons, of which 68% was Xinjiang cotton.

There are many rumors that the reserve cotton will be sold at 19000 yuan / tonne < a href= "//www.sjfzxm.com/news/index_s.asp" > /a > 3 tons of reserve cotton will be allocated 1 tons floating quotas.

We also heard that most of the tariff quotas in 2013 were processing quotas.

What we need to bear in mind is that so far these messages have neither official confirmation nor official denial.

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