U.S. Dow Jones Index Once Fell A Thousand Points, Cotton Prices May Rebound

On September 21, the U.S. Dow Jones index fell a thousand points, while the US dollar index rose sharply. It was reported that China was considering taking countermeasures against the recent U.S. ban on Twitter and wechat. The market is waiting for the US cotton seedling situation report to reflect the impact of Hurricane "Sally" on the southeast production area.

On the day, the Dow Jones index, gold and the U.S. stock index fell sharply. Such a huge shock undoubtedly affected the sentiment of various market traders, and the financial market was in a state of grief. On the 21st, the U.S. dollar index soared, traders in the face of a sharp decline in the stock market chose the U.S. dollar as a safe haven asset. It is understood that the United Kingdom's announcement of a possible outbreak of the second wave of the epidemic has aroused the market's concerns about the British National blockade and partial European blockade, prompting the dollar index to rise sharply.

Under the influence of the external market, ice futures fell sharply to 64.72 cents, the lowest since September 11, and then the price stopped falling and recovered some lost ground. Analysts said the market is still waiting for the last hurricane to the U.S. cotton production specific losses. Weather forecast shows that in the next 6-10 days, there will be more rainfall in the Delta and southeast of the United States, but less rainfall in Texas. However, at present, eastern Texas may usher in a new tropical storm "beta", which is approaching the coast of Texas and Louisiana, and the market is paying close attention to this.

According to the CFTC position report, the net long of funds continued to increase by 3300 hands last week, reaching 49800 at present. However, in the face of the sharp increase in US cotton contracts, cotton prices did not rise but fell, and the latest seedling situation report also showed that the US cotton seedling situation remained stable. If cotton prices want to rise again, it depends on the weather.