On December 28, ICE futures opened after the Christmas holiday and followed the external market higher. The main reason was that Trump finally signed the new crown epidemic relief bill last weekend. As large-scale money printing resumes, inflation will appear again in the commodity market, so the US dollar fell again that day.
Trump signed the $2.3 trillion COVID-19 relief and spending bill into law on Sunday, restoring unemployment benefits to millions of Americans and averting a partial shutdown of the federal government. U.S. stocks rose on Monday, with all major stock indexes closing at record highs. The signing of the U.S. coronavirus relief bill, the signing of the Brexit agreement between the United Kingdom and the European Union, and the launch of large-scale COVID-19 vaccination operations in Europe are expected to continue to boost financial markets.
Last week’s U.S. cotton export weekly report showed that U.S. cotton export contracts exceeded 400,000 bales for the third consecutive week. Although ICE futures continue to rise, cotton demand has not been affected. According to USDA’s forecast, cotton’s fundamental situation has begun to reverse. Stimulated by macro policies, the market may continue to consolidate its gains in the future.
For most of 2020, the fund maintained a net long position, and the net long position once reached 70,000 lots, equivalent to 7 million packages. Some analysts predict that cotton prices have experienced considerable increases this year. As the end of the year approaches, the market may experience a certain degree of correction to accumulate strength for next year.
On the same day, ICE futures closed slightly higher after consolidating. This Friday is the New Year’s Day holiday, ICE futures will stop trading throughout the day, and the US cotton export weekly report will be released as normal on Thursday. </p
