ICE Cotton Futures Can Stand Firm 60 Cents Continue To Pay Attention To Trade War Trend

In August 16th, ICE futures broke through an important psychological price of 60 cents. The driving force for price increases may come from serious oversold markets.

In addition, last week's total 480 thousand package of US cotton exports also boosted the market to a certain extent. Up to now, the US 2019/20 total contract volume has reached 48% of the USDA forecast in the US, and the average value in the past five years is 41%. In the future, the export volume of US cotton can only be maintained at a level of 160 thousand packets per week.

Meanwhile, in the next two weeks, extreme hot weather will occur in western Texas, and there will be almost no rainfall, which will affect new cotton in non irrigated fields. The market is expected to be affected by the weather in western Texas, and the growth of new cotton in the United States may continue to slip.

The Sino US trade war has no signs of ending, and the status quo is also puzzling. Trump said China wanted to reach an agreement, but it was up to him to decide whether or not to reach an agreement. Under such circumstances, there is still a question mark about whether the September talks can be held.

In August 16th, ICE futures closed above 60 cents. Some traders thought that this would have an important impact on market psychology and technology graphic trend. However, at present, there are few market transactions, and speculators are not very popular. Buying is mainly short-term speculation. Overall, the contract closed up 1.23 cents in December, but has fallen by 3.5 cents since August.

From now on, the market will continue to pay attention to the trend of Sino US trade war. The US seems optimistic about the prospects of the negotiations, but the situation in China is the opposite. If there is no further push in the near future, the talks in September may be cancelled at any time. Trump's wish to make an issue on the Hongkong issue will also irritate China.