Sino US Trade Negotiations At The End Of The Month, Shanghai Restarted Domestic And Foreign Cotton Prices Ahead Of Schedule

In recent days, news about the upcoming reopening of Sino US economic and trade negotiations has begun to affect the market. Following the sharp rebound last Friday, ICE futures continued to rise slightly this week, with the main contract breaking upward in December, closing at a resistance price of 64.32 cents in July 24th and a 2.61 cent increase since Friday.

It is reported that the US negotiating delegation will continue to negotiate with the Chinese side next week. In this regard, the US industry expects China to buy large quantities of US agricultural products, thereby stimulating the general rise of agricultural products futures. According to the analysis, the most likely result of this consultation is not a single agreement, but China's promise to fulfill the G20 summit and start buying large quantities of US agricultural products. However, many outsiders and the media remain skeptical about this. They believe that the Chinese side is only willing to speak orally and pose a gesture for the negotiations. The real procurement can only be carried out until the United States abolished the tariff comprehensively. This may be why Trump is still considering adding tariffs to all Chinese products when necessary.

In addition to negotiations, the current growth of new cotton varieties in the United States is becoming more and more ideal, and the proportion of good seedlings has increased significantly, and is much higher than the same period in previous years. The 22 million cotton bag output in the United States will soon become a reality. This is the highest level in the past 14 years. It will also make the end of the US cotton stocks substantially increase, and its impact on the price is self-evident.

On Thursday, the United States Department of agriculture will issue a weekly report on the US cotton exports. If China starts to buy American cotton, it will not only boost prices, but also greatly boost market psychology. There will be a few days to go before the end of this year. A considerable number of Chen cotton contract will be shipped to the next year, otherwise these contracts will be cancelled.