The weather is still supported, export weekly report key

On July 7, after several days of continuous gains, ICE futures showed signs of decline, and speculators profited from closing positions, causing prices to fall intraday.

　　 However, the basis of the market is that New Cotton of Texas still faces a huge test. The report on Monday showed that the proportion of poor seedlings in Texas is still 36%. Although there is no further deterioration, Texas accounts for one-third of US production. The problem of poor seedlings cannot be ignored. The weather forecast shows that in the next 10-14 days, western Texas will continue to have high temperatures above 40 degrees without rain, and the seedlings will continue to deteriorate soon. Overall, the overall growth of US cotton has improved slightly, and the proportion of good seedlings has risen from 41% to 43%.

　　On July 7, the main contract of ICE cotton declined slightly. Considering that the previous period has accumulated a considerable increase, this small correction is not only a technical need but also a very necessary one. Overall, the market is still slowly rising due to the drought in Texas.

　　At the same time, traders were nervous about Thursday’s weekly report on the US cotton export, and there were different opinions on whether China continued to purchase large quantities of US cotton or soon began to cancel the contract. So far, China's signing has not stopped. Considering that China has purchased a large amount of soybeans and corn, the market expects China to import more US cotton, so it will be clear this Thursday.

After a few days of rapid rise, ICE futures entered an adjustment. On the one hand, the weather in Texas provided support to the market. On the other hand, the market expects the US cotton exports to continue to increase. The impact of the US epidemic on consumption is still expanding. High and short fluctuated under the influence of long and short factors.