On January 11, ICE cotton futures rose again during the session. The rebound of the Dow Jones Index and the weakening of the US dollar brought positive sentiment to the cotton market. Previously, the U.S. Dow Jones Index plunged nearly 600 points on Monday before basically recovering its losses. The stock market plunge caused cotton futures to give up most of the day’s gains.
Currently, cotton traders are waiting for Wednesday’s USDA supply and demand report to provide new guidance. The market expects the average ending inventory in the United States to be 3.46 million bales, slightly higher than the 3.4 million bales forecast in December, and the global ending inventory is expected to be 85.61 million bales, slightly lower than the 85.73 million bales forecast last month.
According to traders, demand for US cotton exports has continued, and a considerable amount of cotton has been sold recently. Thursday’s weekly U.S. cotton export report is equally important. The market’s biggest concern is still the shipment data. If the United States is unable to ship in time, it will eventually have to face the terrible situation of contracted volume being converted into ending stocks.
On January 11, ICE cotton futures closed moderately higher. The external market was generally favorable to cotton. Most markets were encouraged by the testimony of Federal Reserve Chairman Powell, in which he classified inflation as “entrenched” rather than “temporary”. of”.
The U.S. Centers for Disease Control and Prevention said that the current number of COVID-19 patients in U.S. hospitals has exceeded the peak last winter, with the number of new cases in a single day on Monday reaching 1.5 million. Even if the actual threat from Omicron is not that great, the U.S. hospital system could collapse due to too many patients and too few health care workers. And the surge in cases may affect future clothing demand.
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