The Rise In Cotton Prices Is Related To India.

In June 17th, the US stock market continued to rebound and led ICE futures to rise. Recently, the Dow Jones index soared and the US New trillion dollar stimulus package stimulated cotton futures very much, and other commodity markets were also encouraged.

This Thursday, the market will welcome the weekly report of US cotton exports. So far, the US cotton contract sales continue to maintain a strong momentum, but traders worry that there may be a breach of contract, and the two outbreak of the global epidemic is also daunting, and the global economy is far from normal.

The weather forecast shows that the possibility of heavy rainfall will increase in the north of Texas in the next seven days. Drought warning showed that the drought in southern Texas increased, but the probability of heavy rainfall on Friday is still 50%, which is beneficial to the growth of new cotton, but it is bad for the market.

The July contract is about to be delivered next week. There are still 18000 hands in the current position. The number of ICE warehouse receipts is 31799 packs, down from 32435 packs last Friday, the first decline in two weeks.

On the 17 day, ICE cotton futures rose sharply, traders closely watched the Sino Indian border conflict. Although the territorial dispute between the two countries has existed for a long time, the situation suddenly escalated this week. The fierce conflict between the two sides led to the death of about 20 soldiers in India. Two countries in China and India are the biggest producers of cotton in the world. The market is worried that border conflicts may threaten the world's cotton industry. In this case, the cotton trade between the two countries may be temporarily suspended. In the current outbreak of the epidemic in South America, the US cotton may be the only possible cotton import variety, which is the base of ICE futures' continuous rise.

In addition, despite the outbreak of the second outbreak in the United States, the United States and the global economy are still recovering steadily. Recent media reports in the US say domestic retail data have hit a record high. How to end the ICE futures this week depends on the data of the US cotton export on Thursday, and heavy rainfall may cause pressure or price on Friday.