Market Observation: ICE American Cotton Trend Forecast In The Recent Week

Last week, the cotton price of ICE US Cotton further rebounded due to the decline of the US dollar index and the reduction of the planting area. ICE cotton futures continued to rise, recording the second consecutive week of gains.

The most actively traded May contract closed 0.84 cents or 1.26% higher at 67.37 cents/lb. It hit a high in more than three weeks in the session, rising 2% this week, recording two consecutive weekly gains.

The specific analysis is as follows:

The decrease of American cotton planting area: The decrease of American cotton planting area is expected to increase the market's concern about tight supply.

Poor weather conditions: adverse weather conditions may affect the planting and growth in the main production area, which will lead to a decline in yield. Weather factors are critical.

The decline of the US dollar index: the decline of the US dollar index supported the prices of commodities denominated in US dollars, including cotton.

The recovery of US cotton exports: the recovery of US cotton exports will help ease supply pressure and boost market confidence.

After the continuous rise of American cotton, the impact of profit taking on the market is not ruled out. Pay attention to the planting area of American cotton and the weather in the main planting areas. It is expected that American cotton will remain in the range of 65-70.