Perhaps New Changes Are Brewing In The Cotton Market.

In the past two months, ICE futures began to contract in the narrow range of 67-70 cents under the pressure of new cotton harvest and increased production.

A few months ago, cotton prices had been consolidated for a month at a low operating interval of 63-66 cents, and then there was an explosive upsurge. The fuse was USDA supply and demand forecast and weather speculation.

The macro and fundamental changes will be accompanied by the pfer of index funds this week. We will wait and see what will happen in the market.

In terms of the cotton market itself, the 67-72 cents range looks reasonable, but for market participants, it may be better to wait and see before the news is clear.

At present, ICE futures hold up to 250 thousand hands. There are a series of events this week. Maybe the market is brewing new changes. Now it may be calm before the storm. All parties need to be vigilant.

November 8th (Tuesday) is the polling day of the US presidential election. Nearly 100 million of US voters will cast their sacred vote at the polling station on this day to elect the fifty-eighth president of the United States.

Republican presidential candidate

And the Democratic presidential candidate, Hilary, will also have the final exam. Whoever wins more than half of the electoral votes will be able to reach the presidency.

Foreign analysts believe that with the rebound in Trump's support rate, the tension in the commodity futures market has increased sharply. If Trump wins, the uncertainty of the commodity market will increase significantly, and may lead to negative effects. If Hilary wins, the financial market can be relatively stable.

Response has been made in advance.

As of October 25th, the fund's net long positions reached 8 million 500 thousand packages. Once the market is in trouble, it will not rule out the possibility of a large number of withdrawal from hedge funds.

At the beginning of this year, a sharp fall in the US stock market was still in sight.

Futures are converted from net to net.

Basically, this Wednesday (November 9th), the US Department of agriculture will issue a new supply and demand forecast. The industry expects that the US and global output increase will be unfavorable to the price trend, but the inventory change of the main cotton producing countries is also the focus of attention.