The Next Bad Day Is Coming, ICE Cotton Futures Or Down To New Lows.

In August 7th, although the ICE futures began to stabilize after the fall of the day before yesterday, and the US stock market began to rise, the technology graphics of cotton futures still did not bottom. As the escalation of trade war caused the market's increasing concern over demand, speculative short sellers began to suppress prices throughout the market.

In addition to adding new tariffs to Chinese products, the US Treasury has classified China as a currency manipulator. This week's exchange rate of RMB seven is considered a measure of China's efforts to increase exports to other countries and offset the negative impact of Sino US trade war. China and the United States plan to conduct the next round of negotiations in September, but now the trade situation is deteriorating.

On Thursday, the US Department of agriculture will release data on US cotton exports last week, and China may have begun cancelling the 2019/20 contract. Next Tuesday, the US Department of agriculture will issue a forecast of global cotton supply and demand. Analysts believe that the cotton production in the US will increase in the 2019/20 year because of the good condition of the US cotton seedling. The 22 million package forecast last month is the highest in 14 years. If output increases as scheduled, the end of US cotton stocks will rise sharply.

In August 7th, ICE cotton futures fluctuated narrowly, continuing to repair the "Scar" left before the restoration, but the market's worries about the demand outlook linger, while the macro and fundamental margins will follow.