No Good ICE Cotton Prices Difficult To Get Rid Of The Current Range

Last Friday's US cotton export weekly didn't surprise the market. Most traders were on holiday after the Independence Day holiday and before the weekend, and ICE futures were trading at a low price. A week later, ICE futures explored upward, but did not get rid of the consolidation interval.

The US cotton export contract increased last week, but it is still very low. According to the current shipment schedule, US cotton export volume is less than 14 million 750 thousand USDA forecast. This also lets the market speculate that USDA will reduce the US cotton export forecast in the July monthly report, and the US cotton end inventory will also rise.

At present, the outlook for cotton production in the northern hemisphere has begun to attract market attention. Last week, the bottom of the contract rose slightly in December, but the overall pressure continued. One of the problems is that China has not started to buy large quantities of cotton in the United States. China's cotton reserves have gone smoothly, and the export market of cotton has been relatively low. In the short term, the market supply is increasing, which is both empty for China and the international market.

According to the South China Morning Post, China and the United States may resume economic and trade consultations this week, but the US restrictions on HUAWEI and the existing tariffs are the biggest obstacles to reaching agreement.

Foreign analysts believe that although the export of US cotton has recovered, it is difficult to get rid of the current range before the new issue of Sino US trade issues. The positive impact of the G20 summit is not even a flash in the pan.