Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News New and old contracts begin to alternate. Can cotton prices remain strong?

New and old contracts begin to alternate. Can cotton prices remain strong?



On May 27, with lingering market concerns about Sino-US economic and trade relations, ICE futures struggled to close higher after consolidating within a narrow range. Trump claimed that he would express his att…

On May 27, with lingering market concerns about Sino-US economic and trade relations, ICE futures struggled to close higher after consolidating within a narrow range.

Trump claimed that he would express his attitude towards China’s enactment of the Hong Kong Security Law this Friday, and the U.S.’s understanding of the first-phase economic and trade agreement and the epidemic in China are potentially detrimental to Sino-U.S. relations. factor.

So far, China is still the largest buyer of U.S. cotton. Considering the increasingly tense relations between the two countries, traders are fully prepared for China to cancel the contract. However, as long as China’s imports do not stop, cotton prices will decline. There is hope that the strong momentum will continue.

Technically, the July contract has become overbought, and the possibility of a correction is increasing. The price reversal on May 20 put pressure on the market. In addition, this Friday is the last trading day in May, and speculators may liquidate some positions. At present, the fund is still net short, but its positions have been significantly reduced. If any bullish factors appear, whether technical or fundamental, it may prompt short positions to continue to be closed.

Starting from June, the July contract will enter a countdown. The Xinhua December contract will gradually become the market leader. The forward supply and demand of cotton will guide the price trend. Will Sino-US relations affect China’s import of US cotton? critical to the market. </p

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Author: clsrich

 
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