26 Jun 2017 08:44
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Intercontinental Exchange (ICE) cotton futures contract fell to its lowest level since mid-August last year, due to the expected new crop annual inventory is sufficient to promote investors to continue selling.
However, by the dollar fell support, December cotton futures closed up 0.28 cents, or 0.42%, reported 67.02 cents per pound, the end of 10 days fell.
The dollar index fell 0.35% on Friday.
Gabriel Crivorot, an analyst at Societe Generale in New York, said the December contract was free to fall for a long time. Today's settlement price rise, mainly affected by technical factors, "is the slowdown in the slowdown, rather than any type of rebound."
Cotton futures fell earlier to the lowest since the end of August 66.33 cents. This makes the price remain in the oversold area, the contract's relative strength index (RSI) is about 20, well below the 30 oversold line.
Peter Egli, British Plexus Cotton risk management department director, said in the report, the current sell-off is a large number of speculative and trading results.