ICE Cotton Futures Technology Transformation, Cotton City Recovery Is Fading Away

In July 9th, ICE cotton futures fell sharply after opening, and the new cotton flowers grew well, the technology graphics were poor and the weather was good, putting pressure on the market.

According to the latest report, as of last weekend, the proportion of new cotton growth in the United States reached 54%, an increase of 2% over the previous year, an increase of 13% over the same period last year, an increase of 5% over the same period in the past five years, a 48% increase in Texas, a 4% increase in one week and 60% increase in the state of Georgia.

On the same day, ICE futures fell to a new low, with a clearer downtrend, and the market was firmly controlled by speculative short sellers. The December contract fell below the June low of 64.70 cents, triggering a lot of stop loss sales, with a total turnover exceeding 57000 hands, and finally closed at a new low of 63.28 cents. There will be no signs of any bull market recovery in the near future as short positions have reached a new high.

Weather conditions in western Texas have improved significantly. Last weekend, heavy rain in the core cotton area of Texas, and this week will maintain fine weather, which is very beneficial to the growth of new cotton. At present, the weather in the whole cotton producing area of the United States is very ideal, and rainfall and sunny weather alternates.

After several days of decline, ICE futures technology graphics have been seriously damaged, and the market needs more time and clearer fundamentals to recover. Pay attention to this week's US cotton export weekly and USDA monthly report.

At present, the market's worries about the global economic recession have begun to aggravate, and the EU's economic growth has begun to decline. Although China and the United States have resumed economic and trade consultations this week, people believe that Sino US negotiations will be protracted, and the real possibility is that no agreement can be reached between the two sides.