ICE Cotton Slipped, Investors Are More Concerned About The Progress Of Sino US Trade Negotiations

According to foreign news on October 10th, cotton futures on the ICE slipped on Thursday. Although the USDA report showed a slight decline in cotton inventories, investors were more concerned about the progress of Sino US trade negotiations. ICE's most active December cotton contract fell 0.67 cents, or 1.1%, and the settlement price was 61.42 cents per pound.


The December cotton trade range is 61.36-62.47 cents.


Keith Brown, President of Keith Brown and Co, a cotton trader in Georgia, said: "the supply and demand report has not gone up and down. The data is fairly neutral. Now we are waiting to see whether there will be good news from China US economic and trade negotiations. "


On the morning of October 10th local time, members of the Political Bureau of the CPC Central Committee, vice premier of the State Council, and Liu He, the Chinese leader of the Sino US comprehensive economic dialogue, began a new round of Sino US economic and trade consultations with the US trade representative, lettchet, and finance minister Mnuchin. The current round of high-level consultations were scheduled to be held in Washington from 10 to 11, and the two teams had already started work level consultations.


In October, the US Department of agriculture lowered the US 2019/20 output and the end of year inventory estimate in the supply and demand report. The US 2019/20 cotton inventory at the end of the year is estimated at 7 million bales, with an estimated 7 million 200 thousand packages in September.


"The report is not very profitable," said Jobe Moss, a broker at MCM Inc, Dezhou. Market expectations are also close to 7 million packages.


The United States Department of agriculture has also lowered global cotton production forecast in 2019/20.


The Ministry of Agriculture said: "the global cotton production forecast has been cut by 130 thousand packages, and the production prospects of Brazil, Pakistan, Australia and the United States have reduced the estimated output of 1 million packages in India."


The USDA supply and demand report shows that the global cotton inventory at the end of September is estimated at 83 million 690 thousand packages, with a forecast of 83 million 750 thousand packages in September.


In addition, the US Department of agriculture's export sales report released on Thursday showed that in the week ending October 3rd, the US 2019-20 annual export sales of upland cotton increased by 188 thousand and 800 packets, an increase of 6% over the previous week, an increase of 53% over the four week average.


In the week 2020-21, the US cotton exports decreased by 5 thousand and 300.


The total volume of futures market decreased by 4736 to 20261.


Data show that the previous day cotton holdings reduced by 200 to 236128 hands.


As of October 9th, the ICE contract for delivery of cotton futures contract No. 2 was flat at 10523 packs.