COTTON will be cheaper
Players in the commodity markets seem to temporarily forget about cotton. Level 71 cents / pound saved since September 26, and the volatility is extremely low, says economic analyst independent forum Et-Trade Anton Golitsyn.
Weekly Report USDA (United States Department of Agriculture) September 27, showing a small increase in the consumption of cotton in relation to the previous week.
The data confirm that the U.S. market - the largest consumer of cotton - not yet in need of large purchases. And given the fact that we come to the period of the new crop, it is impossible to expect a shortage of cotton, which will raise the price of the futures market.
So while the forecast Et-Trade remains the same, the expert says: technical correction in futures on cotton to the level of 74 cents / lb, and then a new wave of price reduction. Schedule from July 2011 shows that the cotton remains in long-term downward channel. Now after the expected correction of the main purpose of quotations is the level of 66.4 cents / lb.
