On February 8, ICE cotton futures continued to fall slightly after opening, with the front-month contract falling significantly, while the new flower December contract continued to climb to new highs.
On the same day, international oil prices fell in early trading before the United States and Iran resumed indirect talks. Some analysts believed that the talks between the two sides may lead to the lifting of sanctions on Iran’s oil sales, thus leading to an increase in crude oil supply. Recently, international oil prices have risen to a nearly seven-year high, mainly driven by factors such as strong demand, tensions in Eastern Europe, and tight supply caused by cold weather in the United States.
On February 8, the ICE cotton futures front-month contract recovered the previous day’s losses, and the Xinhua December contract also reached a new high and reached 105 cents for the first time, which is a certain milestone. One of the reasons why ICE futures contract prices have fallen in recent times and risen in recent times is that traders have transferred a large number of positions from the March contract to distant months, including the December contract. In addition, uncertainty about new cotton planting intentions and dry weather also support the continued rise of far-month contracts. Currently, drought continues in western Texas in the United States, and the market has begun to pay more attention to the situation of new flowers.
On Wednesday evening, the U.S. Department of Agriculture will release its supply and demand forecast for February. The market generally expects a slight increase in U.S. ending inventories, while global ending inventories are expected to decrease slightly. The weekly U.S. cotton export report will be released on Thursday. U.S. cotton signings were quite strong last week and shipments were greatly accelerated, which may indicate that the supply chain crisis is easing.
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