On April 21, ICE cotton futures continued to maintain an upward trend. The market is awaiting Thursday’s weekly U.S. cotton export report and guidance from external markets. Although some traders expected a bright performance in U.S. cotton exports last week, in fact few believed it would become a reality.
In the external market, the U.S. stock market fell again, energy prices fell again, and the epidemic has rebounded in many countries recently, especially the out-of-control epidemic in India, which has reduced market expectations for cotton consumption.
At present, the drought situation in Texas continues to ferment. In the next 6-10 days and 8-14 days, the temperature will be high and the rainfall will be low. There will be no rainfall in the next 5 days. Analysts believe that if the Texas drought continues to worsen, prices are likely to rise further. On that day, the May contract and the July contract closed up 100 points, and the Xinhua December contract rose 63 points.
Technically, there is important technical resistance above cotton. The old flower contract is currently halfway down the mountainside of the rebound, and the December contract is above halfway up the mountainside. Recently, ICE futures positions have been declining and prices have been rising. This situation is a typical feature of short covering and is difficult to sustain. Cotton prices are expected to encounter technical resistance in the short term. </p
