Cotton Market: Supply And Demand Change Leads Market Trend

After Zheng cotton arrived at the lower edge support of the downstream channel since last October, there is technology.

Appeal, in January Zheng cotton technology rebound mainly, the upper pressure level 11500-11600.

From a fundamental point of view, there is a lack of further negative factors, but there are not enough effective ones. It can be said that the market rebound can be expected, but the reversal is still hard to come up with.

The US Department of agriculture continues to reduce the output and demand of global cotton (10525, 15, 0.14%) in 2015/16, and the supply and demand is two.

The stock price dropped from 22 million 760 thousand tons last month to 22 million 610 thousand tons.

Analysis under

The reason for the adjustment of the global cotton supply and demand data is that the supply reduction is mainly due to the weather problems in the US harvest and the weather related problems encountered during the growth period such as China. The demand reduction is mainly due to a slight reduction in India, and some other main selling countries have also been downgraded. China's demand has not been further lowered in this report.

India's domestic demand is weak, and the price of new cotton is weak after listing.

The forecast is still relatively strong, and this time it continued to raise its export expectations, from 1 million 160 thousand tonnes last month to 126 tons, ending inventory down from 2 million 700 thousand tons last month to 2 million 550 thousand tons, and the country's inventory has been down for third consecutive months.

2015/16 cotton stocks rose from 650 thousand tons to 680 thousand tons, mainly due to weak domestic demand and export demand.

In China, the end of last year stock reduction was cut down from 14 million 70 thousand 1418 tons last month due to reduced production.

The global cotton inventory is down, and the data are in the majority. However, the demand data is still weak, restricting the kinetic energy, the market rebounding, but the intensity is still insufficient, and the demand is further warmer. In this report, China's demand has not further lowered or released a signal, the kinetic energy shortage, but the pressure is also shrinking.