Cotton Prices Hit A Low Point Again This Week To Restart Trade Talks

In July 8th, ICE futures narrowed off after opening, but then prices weakened. Last weekend, the western Texas rainfall and warmer weather in the next few days were favorable for the growth of new cotton, causing considerable sales.

As of June 27th, cotton exports in the US 2019/20 reached 25.5% of USDA's forecast, and the average value in the past five years was 22.5%. At present, the market has high expectations for China's signing of the import of US cotton. It is reported that in July 8th, the US trade negotiation delegation started a new round of trade consultation with China and will stay in China this week.

In terms of Finance and economics, Turkey's lira dropped 2% against the US dollar in July 8th. On Friday, the US non farm employment data far exceeded market expectations. The Dow Jones index fell when the Federal Reserve lowered interest rates, and the Federal Reserve will hold a conference on interest rates in mid July.

Later this week, the US Department of agriculture will issue the latest monthly supply and demand forecast. It is worth noting whether USDA will adjust its yield and output in the case of the decrease in US cotton area.

In July 8th, ICE futures sharply lowered by more than 100 points, closing at a recent low of 65.64 cents, the third lowest point in Texas, and the warmer weather in the coming week, which is extremely beneficial to cotton growth. In this case, even if the sowing area of the US cotton is lower than the intended area, with the help of the heavens, this year's cotton production per unit area is expected to increase.

At present, short positions have reached a new high. Although the July contract ended the transaction, it still had an impact on the new flower contract. The final price difference could bring the contract in recent months down to the level of the July contract.