Cotton Prices Waiting To Rise

In April 27th, ICE cotton futures were slack. Before the appearance of an increase in demand for us cotton in China, traders cautiously operated and partially speculated for a long profit. The price continued to decline on Friday.

Last week, the fund also sold 2210 contracts, with a net short increase to 25490. Some traders believe that the current cotton price is only a rally after the rally, to digest the pressure of overbought early. In the medium term, the trend of gradual recovery of prices has not changed. Maybe Tuesday prices will rise again.

According to the US Department of agriculture's latest report, as of April 26, the US cotton sowing schedule was 13%, leading to last year and the same level in the past five years. Last week, precipitation in the southeast and delta areas of the United States resulted in interruption of field operations. The temperature is expected to be normal over the next 6-10 days. Some parts of western Texas are higher than normal. Rainfall is expected to be normal and rainfall in the southeastern part of the delta may be relatively low. Overall, the epidemic did not affect the sowing of US cotton. At present, the progress of US cotton planting is basically the same as in previous years.

Although there are rumors that China will increase imports to US cotton, the continued pressure on textile mills is still worrying. If US cotton exports can not keep up with China's rumours, cotton prices may fall back again. India Cotton Corp has acquired a large number of new cotton, if released later in the domestic stock, will bring pressure to India cotton prices. CCI can also choose to export at a low price, which will bring pressure to the international cotton price.