Ice Futures Will Hit A New High

In the past week or so, the weather in the main production areas of the northern hemisphere has become the cause of market speculation. ICE Futures, as usual, went all the way through the harvest peak and constantly set new records. By the end of October 16, the main ice futures contract closed at 69.92 cents in December, breaking through 70 cents in the session, setting a new high in the current round. As of the afternoon of October 19, the December intraday peak was close to 71 cents.

It is reported that India's new cotton has been affected by the continuous monsoon rain recently. This year, Indian monsoon rains come early and leave late, and rainfall exceeds normal levels, causing floods and crop disasters. So far, there is no sign of a complete end to the monsoon rains. The United States has been suffering from Hurricane Delta for nearly half a month, with heavy rainfall in most cotton areas from the delta to the southeast. Although the harvest was accelerated before the hurricane, most of the new cotton was still not harvested, and the cotton producing areas in the next week will maintain the situation of excessive rainfall, and the harvest of new cotton is generally delayed by more than one week. At the same time, Pakistan's sharp reduction in cotton production has led to a large increase in import demand, while the general decline in cotton quality in Xinjiang, China, has also aroused concern from the outside world.

On the whole, there are many problems with cotton harvest in the northern hemisphere this year. The delay of new cotton harvest, reduction of yield and quality are the causes of market speculation. From the consumer side, with the recovery of cotton consumption in textile mills and the recovery of clothing terminal demand in the United States, the problem of new cotton supply has become the catalyst of the market, and the market hype has artificially intensified the situation of tight supply.

On October 16, ice's main contract in December broke through 70 cents, which is a milestone. Up to now, the bullish atmosphere in the market is quite strong. On the one hand, it is led by technical graphics, on the other hand, it is worried about bad weather. According to this situation, ice futures will continue to rise to a new high. As of last week, ice futures fund positions have changed from 49000 short hands to 56000 long positions.