Yarn Production Is Sluggish And Downstream Demand Is Weak. China Will Increase Procurement Of US Cotton.

Last week, ICE futures rebounded because investors expected large imports of US agricultural products after the Sino US negotiations reached an agreement. But the US Agricultural Outlook Forum predicts that global inventories will rise in the coming year, and prices will not rise in the long run, giving the market a cold drink.

According to the news, China and the United States may reach a series of memorandums of understanding, including imports of agricultural products. China has promised to further increase its purchases of US agricultural products, including cotton.

China's resuming of the purchase of US cotton will undoubtedly stimulate ICE futures to rise. Last Thursday, the market rebounded and the main contract rose 2 cents.

From the USDA Outlook Forum, the global stock increase and short-term price rise in the next year should be a good driving force for Sino US negotiations. But in the long run, slowing global economic growth will still inhibit cotton demand.

In recent weeks, China's domestic cotton prices have climbed slightly under the support of tight supply in the short term, but demand is still very weak, reflecting the overall downturn in yarn production. The decline in cotton prices in India is also the reason for the decline in domestic yarn production, but Pakistan and Bangladesh have a strong demand for India cotton.