On February 3, following the price recovery the day before, ICE futures continued to stabilize, with the market trying to hold on to the current support level.
On that day, the U.S. dollar index continued to climb. The Democratic Party hopes to launch another $1.9 trillion on top of the $1.8 trillion launched last summer and the $900 billion launched in December last year. Although this approach is negative for the U.S. dollar, But the current rebound in the dollar seems to indicate that this ultra-large-scale money printing will not pass Congress.
The February forecast of the International Cotton Advisory Committee (ICAC) believes that global cotton production in 2020/21 will be 24 million tons, a year-on-year decrease of 8%, lower than the USDA forecast of 112.87 million bales (USDA forecast a year-on-year decrease 5%).
On February 3, ICE cotton futures fluctuated within a narrow range and closed slightly higher, mainly due to the rebound in Chicago grain prices and the slight weakening of the US dollar. Analysts said the current cotton demand situation is still good. Cotton merchants reported that purchases from Asia continued, and traders paid close attention to Thursday’s weekly U.S. cotton export report. In recent weeks, U.S. cotton export contracts have remained above 300,000 bales. At the same time, the market is always tracking whether the new round of economic stimulus package is passed by Congress. If it can be passed, it will definitely bring positive factors to the market.
Important reports on the cotton market in February will be released intensively. In addition to the US cotton export weekly report, USDA supply and demand forecasts, NCC intended cotton planting area and USDA agricultural outlook forum are all focuses of attention. The above-mentioned reports, as well as the US economic stimulus package, Sino-US economic and trade and other factors will guide cotton prices in a new direction. </p
