Comment online at the world cotton: cotton price has not yet formed at the bottom
May 2, ICE cotton futures fell following the outside markets and is led by a variety of day one. ICE Futures U.S. trading session continued to decline, the emergence of a large number of late buying, led declines narrowed.
On Friday, the May contract a large number of delivery, the current positions of the contract is still more than 5000, so the number of delivery will continue to increase. If you could not pay the short side of cotton must be open, otherwise, as compensation for breach of contract. Currently, the May contract was 20 cents higher than the July contract for more than on the short side is risky.
India and Pakistan, the depth of the domestic cotton price continued to fall, the Indian domestic spot prices of some varieties has fallen to a new low in recent months, S-6 within one month the price fell from record highs of 19%. Indian cotton prices fell and the incentive is the new cotton is expected to yield Chenmian. Last seven weeks, India has five times the amount of new cotton market than last year, an increase in total market volume continued to expand, the official expected the actual production fell 5% of the claims highly questionable.
After rising on Friday, after, ICE futures fell again. Day after the July contract opened flat all the way down, the resistance of the recent price of 157 cents in the near support level for the 146.50-144.30 cents, if the price continues to fall below 152 cents.