ICE Cotton Fell, Waiting For Progress In Sino US Trade Negotiations

ICE cotton futures fell on Friday, and the market await the progress of Sino US trade negotiations. Before the first notice of contract July, the dealer will extend the contract.


The most active December cotton contract closed down 0.4 cents or 0.6%, and the settlement price was 65.56 cents per pound.


Intraday trading range is 65.52-66.97 cents. It fell about 0.3% this week.


British merchant Plexus Cotton risk management director Peter Egli said: "there is not enough buying to curb market downtrend, both in futures and spot markets."


"Perhaps Sino US trade negotiations or weather problems will eventually trigger a speculative buying, but the market does not have much upward space."


Export sales report released on Thursday by the US Department of agriculture (USDA) showed that in the week ending June 13th, the US 2018-19 annual export sales of land cotton fell by 119 thousand and 300 packages, hitting a low market level, a significant decline compared with the previous week and the first four weeks.


Market participants are waiting for the US Department of agriculture's report on planting area in June 28th.


Cotton futures fell more than 1% on Thursday, as investors levelled positions before the first notice of July contract.


The July contract will be full in next cycle.


The total volume of futures market decreased by 13282 to 20902 hands. Data show that the last trading day decreased by 2432 to 176222 hands.


As of June 20, 2019, the ICE contract for delivery of cotton futures contract No. 2 was 98414 packages, the last trading day was 97713 packages.