Cotton Futures Trading Is Driven By Speculative Buying.

According to New York's March 2nd news, the ICE cotton futures closed down on Wednesday, due to speculative buying.

But analysts say the deal is slowing down.

With the sell-off of investors, cotton futures held at a low level of seven months, despite the tight supply, most market participants still believe that the fundamentals of the market are more favorable.

Analysts say strong fundamentals provide support for cotton (0, -32805.00, -100.00%) futures and spot prices.

Data show that

In May, the contract was closed at 7 cents or up 3.6%, closing at $2.006 per pound, with a low intraday low of $1.933, which reached a record high of $2.1176 last week.

Preliminary data showed that the turnover was about 18300 on Wednesday, about 40% lower than the conventional turnover on 30.

MCM Inc analyst Jobe Moss said, "today is most likely to be driven by speculative buying.

"

But he noticed that the paction was sparse, and he said that the price volatility of the cotton futures was easily exaggerated in view of the quiet trading market.

Looking ahead,

Analysts estimate that last week, the US exported 200000-250000 bales of cotton exports, compared with 275100 packets a week ago.