Sino US Trade Negotiations Have Achieved Positive Results ICE Cotton Futures Prices Rise

In October 11th, ICE futures rose sharply, and Trump's meeting with Chinese negotiators stimulated the majority of the market to go up. Earlier, China was scheduled to return home early after Thursday's talks, because the negotiations did not make any progress, but then Trump sent a meeting with Liu crane to let the market rekindle hope.

According to the outcome of the talks, China and the United States will reach a partial agreement. The two sides have made substantial progress in the fields of agriculture, intellectual property protection, exchange rate, financial services, expanding trade cooperation, technology transfer and dispute settlement. The two sides discussed the follow-up consultations and agreed to work together towards the final agreement. The news made the financial markets more excited. Optimism encouraged the US stock market and most commodity futures to strengthen, and cotton futures approached price limits.

In addition to Sino US negotiations, the Texas Texas temperature is expected to drop below freezing point this week and a large area of frost will also give ICE futures a "boost of firewood". Although the cotton fields in late Texas can weather the bad weather, the market is very happy to accept bad weather. In the case of positive progress in Sino US negotiations, the wind and grass in the weather are naturally used for speculation.

The US Department of agriculture's forecast of supply and demand in October reduced the output of US cotton by 150 thousand packs. The high temperature and dry weather in the first two months did have an impact on output. But if the US cotton production is cut down, USDA will not be adjusted at once, but will be repeated several times. Therefore, the forecast of supply and demand in November and December will be more important.

After the initial excitement, the price trend in early market next Monday is noteworthy. When important news is already digested by the market at the weekend, whether cotton prices can continue to develop upward is still to be observed. In October 11th, the ICE futures contract closed at 63.88 cents in December, and the March contract closed at 64.45 cents. The market volume reached more than 60 thousand hands.