Tight Spot Pressure On Sino US Relations In Cotton Spot Market

In recent weeks, although the Sino US relations have led to market concerns, the low price of India's cotton exports has also put pressure on the market, but ICE futures remain strong.

While ICE futures remained strong, India cotton fell by 12-13% within four weeks, while other locations rose by 2-3%. Later, with the beginning of cotton harvest in Brazil, Brazil cotton also hopes to reduce prices, giving the spot market new pressure.

According to the weekly report of US cotton exports, the demand for us cotton has been reduced. With the deterioration of Sino US relations, cotton prices will fall again if China's demand is exhausted. Cotton imports in Pakistan and Bangladesh may rebound shortly after the end of Eid al Fitr, but import demand will remain low in the context of declining garment production.

Financial markets continue to ignore the scope of the economic crisis, but as time goes on, the specific performance of the economy will gradually emerge. From China to the US and Europe, even if the social and economic order returns to normal, retail consumption will not be fully recovered. Meanwhile, the recent race riots in the United States will further aggravate business expectations.

The recent Hongkong issue has strained relations between China and the United States. Last week, five Trump announced that he wanted to re impose tariffs on Chinese products. China is waiting for its further measures to decide the next step. Since it is not clear how long the United States will make a decision, Trump has not provided any details or time frames, so the US stock market has made a positive response.

Although Trump regularly threatened to cancel the "first stage" trade agreement, his senior economic adviser said the agreement would continue. Larry Kudelo, director of the State Economic Commission, said last Thursday that the trade agreement is still continuing and that we may be making progress there.