Cotton Market Continues To Recover, Weather And Exports Remain Critical

July 14, cotton market appeared more follow-up selling, the market tried to correct the early rise caused by overbought situation.

As of July 12, the excellent rate of new cotton in the United States rose to 44% as of July 12, an increase of 1 percentage point over the previous week. The excellent rate of Georgia was 75%, and the poor seedling rate of Texas soared from 36% to 41%. According to news reports, there was rainfall in northern Texas on Monday, but forecasts for the next 6-10 days and 8-14 days show that the temperature in Texas will continue to be high and the rainfall will continue to be low.

The latest statistics show that China's imports to the United States in June increased by 11% year-on-year, while in May, they fell by 13.5%. Meanwhile, China's exports to the US rose 1.4% year-on-year in June, compared with a 1.3% decline in May. In June, China's imports to other countries increased by 2.7% year-on-year, compared with a 16.7% decline in May. Overall, China's exports rose 0.5% year-on-year in June, compared with a 3.3% decline in May. The above data exceeded most analysts' expectations, indicating that China's economy is recovering faster than most expected.

On July 14, ICE Futures continued to callback and speculative bulls were waiting for an opportunity to close their positions, but the market transaction remained light. Traders will keep a close eye on any weather news to gauge the impact on new cotton growth. At present, parts of the southeastern part of the United States are rapidly turning dry. Although there was afternoon rainfall in the past few days, soil moisture is rapidly distributed under the influence of continuous high temperature, and the gradually formed new drought has also aroused the market's attention to insect pests.

At present, the market is still worried about China's relations. China has launched a series of counterattacks against various actions of the US government. The market pays close attention to the impact of bilateral relations on US cotton exports.