Bearish Factors Affect ICE Cotton Futures Or Fell To 55-60 Cents Fast.

In July 17th, ICE cotton futures continued to decline under the pressure of a series of negative factors. In addition to the falling trend of technology graphics and the record of short positions in funds, the US and global cotton basic data released by the US Department of agriculture have enduring psychological pressure on the market. The latest projections show that in the year 2019/20, the US cotton output reached the highest level of nearly 22 million years in the past 14 years, pushing the global end stock to more than 80 million packs. At present, the new cotton growing in the United States is getting better, and the proportion of good seedlings increased to 56% last weekend. The prospect of bumper harvest in America and cotton is changing from expectation to reality.

Traders are wondering what can prevent cotton prices from falling out of control and letting the market stop and rebound. The only possibility is that Sino US trade will reach agreement. However, China demands that all tariffs be increased before the agreement is reached, so that the possibility of Sino US talks is negligible. In July 16th, Trump also said at the White House cabinet meeting that the United States had a long way to go to reach a trade agreement with China, but if necessary, the United States might impose tariffs on Chinese products worth 325 billion US dollars.

On Thursday, the US Department of agriculture will issue the latest weekly report on US cotton exports. Last week, China cancelled 10 thousand packs of 2018/19 cotton contract, and the new flower purchase was zero. You know, China has promised to buy large quantities of US agricultural products at the G20 summit, and now China and the US have resumed negotiations, which is rather disappointing for the market.

Under the influence of all these bearish factors, ICE futures fell to a new low in July 17th, and there were four new low in nearly seven trading days. Now the purchase of the bottom copy has been thoroughly cleaned, and speculative short positions are running record. Foreign futures analysts believe that ICE futures will soon fall to 55-60 cents.