US Cotton Experts: Cotton Demand Is Down, Prices Continue To Fall.

Cleveland, an American cotton expert, said last week ICE futures continued to be stuck in the mire and fell to a three - year low of 61.25 cents in July. Cotton prices fell below 60 cents before China started to ship out in 2016.

Cotton prices have fallen to the same level. It seems that the recent demand has completely stagnated. The few enquiries in textile mills are only new cotton harvested in Brazil. US cotton new flower supply will follow, but from the US cotton export weekly, no one is interested in the new flower. There is no demand at all, so prices have no choice but to fall.

Global demand for cotton has begun to decline, the first being China, and textile production and exports have declined. Although many of the small problems of sowing and production have been heard around the world, it is too early to talk about production. Therefore, cotton prices will remain under pressure for at least one month until the output of new cotton becomes clearer. The growth of new cotton in the US and India needs special attention in 7-8. It is expected that the 62-68 contract will be consolidated in December before the middle of July, but the overall trend is still downward.

The bull market is driven by strong demand and reduced production, but demand is the main guideline. Although the demand for cotton is increasing overall, there are obvious signs of weakness now, and with the expectation of global output and inventory growth, the bear market has been firmly in control of the market for three months.

So is the market now bottoming out? The answer is probably not yet. The growth of new cotton in the northern hemisphere has just begun. Although there are delayed sowing in some areas, it is now only in June. The dry land in Texas has to be sowed before mid July, and there are almost three weeks. Moreover, the India monsoon is late, but it is normal on the whole. The specific growth of the new cotton is not clear until mid August. At this stage, demand has the most prominent impact on cotton prices.

The resolution of tariff problems in China and the United States will boost the market slightly, but there is no direct relationship between price fluctuations and tariffs, but consumer demand and global inventory, especially in the exporting countries. The market is looking forward to good news. The price will remain below 65 cents in the short term, and the overall trend is still bearish.