Stock exchange news. The current situation at cotton market is shown in the US Ministry of Agriculture report, issued on September 12. The following points have been reconsidered:
1. World production has increased by 252 ths. bales, in other words, from 122.710 mln. to 122.962 mln. This happened due to Chinese production, which has increased by 1 mln. bales. At the same time, Pakistan production has dropped by 500 ths. bales, although it had been expected that flood would harm the harvest to a great extent.
2. World cotton use has increased, although to the minor extent of 45 ths. bales. Indonesia, whose use has increased by 200 ths. bales, has played the crucial role. Other countries have either cut the use or maintained the previous month level.
3. Import and export have been cut by 275 ths. and 290 ths. bales accordingly. China, which has cut its import by 500 ths. bales, has played the crucial role in import shortage. Taking into account the fact that China has increased production by 1 mln. bales and lowered import by 500 ths., it becomes clear that Chinese transit stocks have increased by 500 ths.
4. Transit stocks have been reconsidered towards lowering by 752 ths. bales, to 51.907 mln. It is worth mentioning that Indian transit stocks have dropped from 9.249 to 7.749, in other words, by almost 1.5 mln. bales.
Taking the abovementioned into account, the analytics of the Department of Derivatives Trading of Forex Academy and Masterforex-V Stock Exchange and Futures Trade admit that the general reconsideration of the main points at cotton market brings minor change; as a result, bear trend mostly remains. After a long consolidation, which has lasted for two months, the market has broken the 50-day and the 200-day moving averages and reached the resistance level of 100, where consolidation will happen sooner, and downward motion will remain further.
