Rise In Cotton Prices And Return To Self

In September 18th, international oil prices continued to fall, and ICE futures came up with many follow-up sales. Prices continued to trend back, and the market continued to decline.

The biggest news of the day was the Federal Reserve's second interest rate cut for the year, which was 25 basis points cut. At present, the volatility of global financial markets has weakened, and the market has been observing whether the Saudi oil depot has attacked retaliatory counterattacks.

According to past experience, cotton prices usually fell at this time until the lowest point of the year. Therefore, the fall in May may continue throughout the new cotton harvest. By the end of last week, the US cotton harvest rate was only 8%. USDA expects us cotton output to be 21 million 860 thousand packs this year. Such a big supply may lead to a further decline in cotton prices.

Last week's short excitement, the cotton market revisited its fundamentals this week. Last week, the US cotton exports were still bleak, and the USDA monthly report turned out to be bad. The Sino US negotiations have not yet had substantial positive news. Before that, the market needs to return to its true self. 60 cents is the first target price, and the medium and long term trend of the market has not changed.