12.8 Low Cotton Harvest In ICE Stage; Depressed By A Small Amount Of Selling By Investors

ICE cotton fell slightly on the 8th as the European Central Bank has no intention of quantitative easing plan , triggering slight selling by investors.

The comprehensive media reported on December 8 that the cotton futures of the Intercontinental Exchange (ICE) closed slightly lower on December 8, as investors sold a small amount of cotton futures. Analysts said that the European Union (EU) Summit to be held on the 9th and a government crop report to be released attracted investors' attention.

The weak financial market put pressure on cotton futures. After the European Central Bank (ECB) cut its benchmark interest rate, Mario Draghi, the president, dismissed the expectations of the outside world for the central bank to take large-scale stimulus measures. He said that the ECB was constrained by its own mechanism in boosting liquidity through quantitative easing.

ICE cotton for March delivery ended 0.26 cents lower at 92.05 cents per pound, with an intraday trading range between 91.66 cents per pound and 92.99 cents per pound. The 7-day trading range was 91.75 cents/pound to 93.80 cents/pound.

According to ICE Futures data, the turnover on the 8th was about 6600, compared with that on the 30th mean value More than two-thirds lower.

Keith Brown, president of Keith Brown, a commodity agency, said, "We are waiting for the European conference. This is a big play."

The debt crisis has plagued the financial market for several weeks, and the possibility of recession is increasing, which may impact most countries in the world.

In addition, market participants are also waiting for the USDA monthly supply and demand report.

USDA is expected to be lowered in 2011/2012 U.S.A The output of cotton (20595,60.00,0.29%) is estimated, and the US cotton export forecast for 2011/2012 is adjusted.

USDA had predicted in the November supply and demand report that the US cotton output would reach 16.3 million bales in 2011/2012, lower than the 16.61 million bales in the previous month. US cotton exports are estimated at 11.3 million bales, up from 1150 previously 10000 packages 。

ICE data shows that there were 140708 open positions in the cotton market on the 7th, compared with 139821 on the previous day.

ICE data also showed that the total turnover on the 7th was 9344 hands, higher than 12621 hands the previous day.