Multiple Benefits Come Together, Cotton Prices Go Up Slightly.

In February 18th, ICE futures rushed to the highest level since January 31st. Last weekend, NCC expects us cotton area to decrease by 5.5% compared with the same period last year, and US cotton output is expected to be 19 million 800 thousand packages in 2020. At the same time, the Central Bank of China will further cut interest rates in response to the new crown virus epidemic and stimulate China's economic growth. At the same time, the Chinese government began to eliminate tariffs on some 700 imported American products to ease the shortage of supplies during the outbreak, which prompted ICE futures to become stronger.

Last week's report showed that in the first week of February 11th, the net position of the fund increased to 33800 hands. From last year's cotton harvest to the present, the position of the fund kept a long net position as a whole. In February 24th, the contract will enter the delivery in March, and the dealer must remove the position or shift to the forward contract before that.

According to market analysts, the Chinese economy will undoubtedly suffer a significant negative impact from the epidemic of pneumonia, but it is hard to predict how much it will drop. To this end, Apple Corp has said it can not achieve first quarter revenue, which led to a drop of more than 100 points in the Dow Jones index in the early morning.

Due to the impact of Monday's US presidential Day holiday, this week's US cotton export weekly was postponed one day. The last three times, the US cotton signed two times the highest annual record, a shipment hit a new high. The overall performance of US cotton exports is still satisfactory. What we need now is the fact that China has increased its signing to US cotton.