On April 7, ICE futures rose again during the session, with the market looking forward to this week’s USDA monthly report and US cotton export weekly report bringing good news.
The first is this Thursday’s weekly US cotton export report. Last week’s weekly US cotton export report was extremely disappointing, which directly triggered the price limit of cotton. The market hopes that this week’s report will improve, at least without more contract breaches. Then there’s Friday’s USDA supply and demand forecast. According to the survey, traders expect U.S. cotton production to be reduced from 14.7 million bales to 14.57 million bales, exports to be increased from 15.5 million bales to 15.58 million bales, ending stocks to be reduced from 4.2 million bales to 4.11 million bales, and global ending stocks to be reduced from 94.59 million bales. 10,000 bales reduced to 94.43 million bales.
On that day, ICE cotton futures fluctuated in a narrow range around the settlement price of the previous day for most of the time. However, the market gained momentum in the later trading period and finally closed slightly higher. Regarding Texas News of dry weather continued to provide support to the market. Rising U.S. corn and soybean markets also boosted market sentiment for cotton.
At this time of year, weather is the event that traders pay the most attention to. There will be a rainfall process in the Delta and Southeast regions of the United States before this weekend, and the temperature will be low. Sowing in Georgia will not officially begin until the end of April. As of the end of last week, the US cotton planting progress was 6%, lower than the 7% in the same period last year and higher than the 5% in the same period in the past five years.
As the fund sell-off comes to an end and the technical graphics trend begins to stabilize, some traders may re-enter the market. Analysts said that the cotton market is currently in a state of consolidation. In the short and medium term, the May contract will encounter resistance near 81.00-82.00 cents, and the support level will be around 77.00-78.00 cents. </p
