On September 16, ICE cotton futures fell moderately, and the rise in the U.S. dollar index put pressure on the market. Traders are worried that the Federal Reserve may decide to start tapering its bond purchases at next week’s meeting, thereby preparing for the next step in raising interest rates. By then, the stock market, financial markets and commodity futures may all come under pressure.
Judging from last week’s U.S. cotton exports, although the total contract volume decreased by nearly 40%, China is still a big buyer, and shipment volume has increased. Therefore, the overall The performance is pretty good. In the past six weeks, U.S. cotton export contracts have reached a level of about 300,000 bales five times. China has begun large-scale purchases in the past two weeks, and U.S. cotton shipments also accelerated last week.
Hurricane “Nicholas” continues to bring adverse rainfall to parts of the delta, and temperatures will be high in most cotton areas in the next 6-10 days and 8-14 days. The delta and southeastern regions will experience more rainfall in the next 6-10 days. The trend will gradually turn dry in the next 8-14 days, and western Texas will maintain dry weather for two consecutive weeks.
On the 16th, ICE futures closed moderately lower. The market began to turn its attention to the upcoming US cotton harvest, and supply pressure began to gradually increase. At present, Hurricane Nicholas and other adverse weather factors have delayed the growth of cotton. The continued dry and hot weather in western Texas is beneficial to cotton growth. The growth of most new US cotton flowers is delayed, and new problems may also be encountered in the later harvest period.
ICE futures have been consolidating between 92 and 95 cents for a long time. For cotton prices to continue to rise, U.S. cotton exports must bring good news every week, otherwise the market will start weaken. The USDA has raised US cotton production and inventories, and further increases may be expected in the future. </p
