Cotton ICE Futures Rose To 3 Month High, Yarn Inventory Increased

In the past week, ICE futures rose sharply to a 3 month high, while global textile production revival prompted textile mills to actively replenishment.

ICE futures contract rose 1.08 cents in recent months, or 1.4%, rising 3.6 cents, or 4.9%, nearly four weeks ago.

As of last Friday (March 22nd), the main May contract rose 5.47 cents from 71.11 points in February 12th, or 7.7%, to 76.58 cents, back to three months ago.

According to data from the US Department of agriculture, the end of this year's cotton stocks increased and the fundamentals did not support the price increase. However, the output of main cotton producing countries (such as India and Pakistan) was disappointing, while the demand for cotton imports in China was significantly weakened. China's import capability is crucial to the market.

Although the current Sino US trade negotiations have not ended, China has not yet lifted tariffs on US cotton.

Affected by this, China's cotton imports have shifted to Brazil cotton, Australia cotton and India cotton.

India cotton prices are also rising, but more because of domestic cotton production.

With the rebound of rupee, India's cotton and cotton yarn exports may be affected, and the decline in cotton demand will also put pressure on cotton prices.

However, the recent rebound in cotton prices may stimulate textile mills to buy.

After the global textile production and sales continued to slump, the recent rise in ICE futures may mean that cotton and cotton yarn stocks will increase.