No One Can Stop The Cotton Market

On July 8, the cotton market was waiting for the next upward signal, and this week's US cotton export weekly report may bring good news. Now the US cotton export has exceeded USDA's forecast, and the market is also worried that China may stop purchasing or even cancel the contract at some time.

On July 8, ice futures closed up sharply, with the main contract in December closing at 64.16 cents, a new high in nearly four months. The market continued to speculate on the drought weather in Texas. Weather forecast shows that the temperature in Texas will be 40 ℃ in the next 6-10 days and 8-14 days, and the probability of rainfall is extremely low. The current situation of Miao state is expected to worsen further due to the market situation of 36%.

At the same time, the number of new cases of pneumonia in the United States increased to a record high in a single day. The strong rebound of the epidemic situation led to the weakening of the US dollar index. The fall of the US dollar on the same day also attracted more buyers to go long, boosting the cotton price to rise sharply.

With the cotton price breaking through the 200 day moving average, the market trend continues to rise. At present, the cotton price has successfully recovered 50% of the lost land in the early stage, and the technical aspect may attract more investors to do more.

This Friday, the U.S. Department of Agriculture released a new supply and demand forecast, which will be the first U.S. cotton production forecast after the actual planting area report, which has a strong guiding significance for the market. Analysts believe that it is possible to reduce inventory in the United States and the world.