China And The US Are Still Expected To Reach An Agreement By The End Of The Year.

Although the market is skeptical about the signing of trade agreements between China and the United States, the two sides still seem to be doing their best. It has been reported that the negotiating team is closely negotiating on how to lift trade sanctions and postpone the implementation of the original tariffs imposed in December 15th, and also to meet the requirements of the first stage agreement, which is the premise for China to continue to buy US agricultural products.

In December 4th, despite the fact that the market did not offer any hope of reaching agreement before December 15th, and the relevant laws of the United States Congress were strongly condemned by China, the negotiating team's efforts to stabilize the market sentiment were positive. The market speculated that China and the United States still expected to reach a meeting by the end of the year.

Up to now, 810 contracts have been delivered in December, all of which are paid by a large company. Last week, the US cotton contract reached 281 thousand and 500 packs and China signed 39 thousand packs. According to foreign trade, China is still the second largest destination for us cotton exports so far. This Thursday's US cotton export weekly and next week's USDA supply and demand forecast will provide new guidelines for the fundamentals.

In December 4th, driven by the Sino US negotiations and the drive of technical buying, ICE futures rebounded slightly after four consecutive drops. Analysts said that the support position of ICE futures is 62,.40-63.70 cents, and the resistance level above is 66-67.13 cents.