Cotton Prices Continue To Prosper

On October 22, the weekly export report released by the U.S. Department of agriculture made the market happy. Last week, the large increase in the number of US cotton contracts stimulated the strong rise of cotton prices again. The recent decline in the US dollar index has provided a boost for us cotton exports.

On the technical side, the cotton price trend continued to develop upward, but it also entered the overbought situation. The net long position of the fund continued to increase, which was equivalent to 6 million bales. At a certain time point, traders would close their positions and make profits or turn to other contracts.

At present, the new cotton harvest in the United States continues. In the next 1-5 days, there will be moderate rainfall in the Delta and southeast of the United States. In the next 6-10 days, the rainfall will be more, and the next 8-14 days will be dry weather. As of October 18, 34% of the new flowers were harvested.

On October 22, ice cotton futures closed in a medium range, and the good performance of US cotton contract signing and shipping brought impetus to the market. Last week, 22 million bales of upland cotton were signed in the United States, more than a week ago.

According to a report of an investment bank in the United States, the commodity futures boom is coming, and its optimistic expectation is based on the global trillions of dollars of capital and the increase in demand brought about by the economic recovery after the epidemic, thus driving up commodity prices, and the decline of the US dollar has further promoted this trend.

Since this week, ice futures contracts in December have risen by 2.02 cents, 6.15 cents this month, and 1.58 cents this year, just one step away from this year's high of 73 cents.