In November, Zheng cotton once rushed to a historical high of 33720 yuan / ton, accompanied by the introduction of several agricultural products by the state. Market regulation Policy, a series of "combined boxing" unprecedented strength, causing a long profit understanding. Cotton price High pressure falls down. In December, imported cotton will be concentrated in Hong Kong. list Policy and fundamentals have a certain pressure on cotton prices. Zheng cotton market pays close attention to the support near the 24000 - 25000 yuan / ton interval. If it can effectively support, the market will show a pattern of wide concussion and consolidation. If it fails to support it, it will focus on the important support near the 22000 yuan / ton line below.

International cotton market

(1) market review

Chart 1-1: the US cotton index daily K line trend chart as at 26 November.

The picture shows the US cotton index's daily K-line chart.

USDA continued to lower global cotton production and inventory in the November global cotton supply and demand forecast report, triggering market worries about China's cotton supply. Cotton prices continued to rise in October and hit the highest level in recent years. In the middle of the year, the Chinese government introduced policies to control price increases, strengthen the supervision of agricultural futures and electronic trading markets, and curb excessive speculation. China's cotton prices fell sharply, thereby affecting the weakening of international cotton prices.

On the whole, in November, the trend of US cotton performance was high and under pressure. (see chart 1-1). At the beginning of this month, the US cotton continued to rush to the high point with 7 consecutive lines and reached its highest point after 152.42 cents / pound. The pressure dropped to 110 cents / pound. Now the US cotton is in the downstream channel. If the next 100 to 105 cents / pound interval can effectively support the trend of US cotton, then the market will show a pattern of wide concussion and consolidation. If it fails to support it, it will continue to oscillate and go down. As of November 26th, the US cotton index held about 163 thousand hands, a sharp decrease of 60 thousand hands compared with the end of 10, while the closing price fell by nearly 10%.