On December 31, 2019, the front-month contract of ICE futures closed at 69.05 cents, down 3.15 cents from 72.20 cents on December 31, 2018, with a cumulative decline of 4.4%, following the cumulative decline of 6.43 cents in 2018. cents fell for a second straight year.
Throughout 2019, the highest price of the ICE futures front-month contract was on April 8, 2019 It was 78.92 cents on August 27, and the lowest price was 57.54 cents on August 27. After several twists and turns, ICE futures returned to around 70 cents at the end of 2019, close to the price level a year ago.
In 2019, the average price of ICE futures was 67.18 cents, a decrease of 14.95 cents, or 18.20%, from 82.13 cents in 2018.
Tiantian ICE | The cotton market is in high spirits at the beginning of the new year
Exclusive news from China Cotton Network: As the signing date of the first phase agreement between China and the United States approaches, cotton Prices started to keep rising. Both ICE futures and Zheng cotton futures have seen considerable gains. The main contract of ICE futures is approaching 70 cents, with a cumulative increase of 7% in the past four weeks.
On January 1, 2020, US President Trump tweeted that China and the United States will sign the first phase of the agreement at the White House on January 15, 2020. In recent days, China’s Zheng cotton futures have soared. The first phase agreement between China and the United States has stimulated demand, and spot prices have begun to rise.
Affected by the New Year’s Day holiday, this week’s US cotton export weekly report was postponed to Friday. Currently, U.S. cotton exports are performing well, and the market is beginning to speculate that the U.S. Department of Agriculture may raise its U.S. cotton export forecast. At the same time, the recent weakening of the US dollar index will be beneficial to US cotton exports in 2020.
Indian prices remain stable on the back of CCI acquisitions. In the past three months, Indian cotton prices have fallen by 5.3%, Chinese cotton prices have increased by 6%, and Pakistani cotton prices have increased by 1.7%. With the overall increase in international cotton prices, the price competitiveness of Indian cotton has significantly improved recently, which is beneficial to later exports.
With the changes in the market, the number of speculative long positions in ICE futures has increased from 6,000 to 18,000. The bullish situation in the market was further consolidated after the March contract successfully crossed the 200-day moving average. It is expected that after the start of the new year, the ICE futures March contract may continue to rise to 70-72.5 cents. However, while the futures rise, the basis of non-US cotton begins to weaken, indicating that spot demand has not kept up, and the cotton price is at 70 US cents. Time-sharing performance. </p
