Weather Factors Are Becoming More And More Important At The Bottom Of ICE Futures.

In May 24th, speculative short sellers left bags for safety before the long weekend arrived, Chicago's grain was red, the weather in the main producing areas of the United States was poor, and technology graphics stabilized.

A week later, though the ICE futures contract rebounded 1.25 cents from the low point in December, it still fell 8 cents earlier.

As of May 16th, the US 2018/19 cotton export contract has reached 106%, and its average value in the past five years is only 101%.

However, the signing process in 2019/20 is only 18%, with a total contract of 3 million 500 thousand packages.

This Monday is the US Veterans Memorial Day. ICE futures closed for a day. This week's US cotton production report and the US cotton export weekly have been postponed one day.

Dealers believe that if the July contract bottomed, spot buyers will be more active procurement, last week's total contract volume in the two year exceeded 500 thousand packages.

From now on, the weather will be an important factor in the fundamentals.

At present, the second largest cotton producing states in the United States are experiencing extreme high temperature and dry weather. This week the southeast and delta of the United States will continue to be dry and hot.

Nevertheless, after the market plunged 12 cents, speculative short sellers were still cautious about opening positions.

After entering June, the market will usher in the June 11th USDA supply and demand report and the June 28th US coverage area report.

The July contract option will also expire in June 14th, and the July contract will be delivered in June 24th.

The last is the G20 summit held in Japan on 28-29 June. The market looks forward to meeting the leaders of the two countries at the summit to improve Sino US trade relations.