On September 1, ICE cotton futures opened slightly higher as the market tried to get rid of the pressure caused by the weakening impact of hurricanes and month-end selling.
On the same day, traders began to focus on this week’s US cotton export weekly report and Friday’s employment data. For the former, the destinations for U.S. cotton contracts last week were almost all Central American countries, with few purchases from Asia, especially China. For the latter, some U.S. states have extended unemployment assistance, which may have an impact on the data.
In terms of weather, the temperature in western Texas in the United States will be relatively high in the next 6-10 days, which is beneficial to the later maturation of new cotton. At present, the hurricane is still bringing continuous rain to the interior of the United States after its landfall, but its real impact is that the logistics at the New Orleans port are in trouble, and the backlog of goods is stranded at the port.
On September 1, ICE futures closed slightly lower. Traders were cautious about the upcoming weekly report on U.S. cotton exports. The shipping problems caused by the hurricane at the New Orleans port also raised concerns. worry. It is understood that Hurricane Ida caused huge damage to the transportation system of the Port of New Orleans, the largest agricultural product shipping port in the United States, and caused huge economic losses. After the power supply was interrupted, it was difficult to restore the power supply. It is estimated to take four to six weeks. Affected by it, corn, soybeans and cotton ended the day lower across the board.
According to the U.S. Department of Commerce, the U.S. consumer confidence index fell to a six-month low in August. This leading indicator means that consumer demand may be sluggish for six consecutive months. In addition, a survey by the University of Michigan showed that U.S. consumer confidence fell to its lowest level in 10 years in August. The reason why the above data is so ugly is that food and fuel prices have risen, and the escalation of the new crown epidemic has repeatedly frustrated consumer demand.
At present, investors are worried about the increase in U.S. cotton supply due to improved crop growing conditions in key cotton growing areas. Peter Egli, risk manager at Plexus Cotton, said that the growing conditions for the US cotton crop are very good. Although the growth progress of the cotton crop in West Texas is slightly lagging behind, the local cotton output potential will still be quite good. U.S. cotton supplies are expected to be higher than estimated in the U.S. Department of Agriculture’s August supply and demand report.
The U.S. Department of Agriculture (USDA) said on Wednesday that the statistics agency will reassess U.S. cotton, corn, sorghum, soybeans, rice and sugar beets in its monthly supply and demand report to be released on September 10. Crop sown area and harvested area data, estimates will be adjusted if necessary. The USDA typically adjusts its acreage estimates for the above crop varieties in its October report. But the Agriculture Department said on Wednesday that this year’s data were “complete enough” to make adjustments in September.
The weekly crop growth report released by the U.S. Department of Agriculture (USDA) on Monday added to concerns about increased cotton supplies. Because the report shows that as of the week of August 29, the growth rate of U.S. cotton was 70%, compared with 71% the previous week and only 44% in the same period last year. But analysts said Hurricane Ida did not cause significant damage to the cotton crop. </p
