On December 15, ICE futures are still rising steadily. The recent strong support comes from last week’s weekly U.S. cotton export report, the reduction of U.S. cotton production and the weakening of the U.S. dollar. The beginning of vaccination for the new crown vaccine has greatly increased the market’s expectations for a rebound in cotton consumption. improve.
Speculators who follow the crowd continue to buy, but the market has had too much good news and will now look for bigger and more powerful positive news to push prices to new highs. To paraphrase a saying that foreigners like to say, the bull market is like a child that cannot be fed enough. It must have continuous benefits injected into the market, but the bear market does not require so much.
On Tuesday, the Federal Reserve began a two-day interest rate meeting. It has recently seemed to become a “cheerleader” for a new round of government economic stimulus and stated that it would not raise interest rates. At the same time, crude oil prices have been rising, also rooted in the weakening of the U.S. dollar, the possible insistence of Saudi Arabia and vaccines to revive the global economy. However, with many countries maintaining large-scale blockades, crude oil supply is as high as eight months.
On Thursday, the U.S. Department of Agriculture will release its weekly report on U.S. cotton exports. Last week’s exports of more than 400,000 bales were already a high number, but the dollar continued to fall thereafter, so the market is still looking forward to new export data. On December 15, the March ICE futures contract hit a new high for this round of increases, further convincing the market that rising cotton prices is the only way forward. As of now, the rise in ICE futures has entered its eighth month. At present, market parties agree that global supply and inventories are tending to decline, which will provide support for prices next year. </p
