How Much Will ICE Cotton Futures Price Rise In 2020?

Since the beginning of the new year, ICE futures continued to rise steadily and refresh its height. At present, the March contract has risen to 70 cents, while the Sino US agreement needs to be signed for another two days. The early good has been basically digested by the market, and the probability of high cotton price consolidation in the short term is even greater.

If the first stage agreement is successfully signed and smoothly entered the more complicated second stage, the market may continue to maintain upward momentum, and the specific content of cotton in the agreement depends. So far, the good agreement between China and the US has been basically digested by the market. The medium and long term trend depends on whether China has significantly increased its purchase of US cotton.

With the price rising, the mood of the textile supply chain has changed. The demand for raw materials has increased in many parts of the world, and the attitude of speculators towards cotton has also changed.

Judging from the historical trend of ICE futures, the price basically fluctuates between 55-100 cents. From a technical point of view, after hitting the bottom of the sector in 2019, cotton prices will advance towards the high point in 2020, and the market entry into the bull market is already obvious.

At present, ICE futures have entered overbought, prices continue to rise need to be properly callback, the main contract may fall back to 67 cents, in the first quarter of this year again to 75 cents high impact. To achieve this goal, cotton prices must be kept at the bottom line of 65-66 cents. Cotton prices will rise to 78-80 cents in the rest of the year, possibly in the third quarter of this year, and will eventually hit 100 cents in 2021 or 2022.