As ICE cotton futures set a fresh 140-year high Tuesday, ZCE cotton futures opened greatly higher in the morning. At close, May11 closed at 29732yuan/mt, up 1075yuan/mt or 3.75%, nearly touching the 30000yuan/mt level. Supply tension and strong spot market remained the main drive.

According to USDA, US is expected to export 3375KT of cotton in 2010/11 season. So far, about 2339KT or 80% has been sold. Among it, 695KT was to China. According to the proportion, another 300KT could be available to China in the future. As to Indian cotton export, Dayanidhi Maran, Textile Minister of India said the country did not have not enough surplus to export cotton. India Gov has allowed export of 55 lakh bales (170 kg each) of cotton for the current season.

Some agents in Futures Companies expected a technical correction at around 30000yuan/mt.

　　　　　　　　　　 Close　　　　　　　　　　　　　　Change
May11　　　　　　　 29715　　　　　　　　　　　　 +945 points
Sep11　　　　　　　29775　　　　　　　　　　　　 +1010 point

 

 

 

source:CCFGroup