Sino US Negotiations May Be Difficult To Reach Cotton Prices In The Short Term.

Last week, the weather in the main producing areas of the United States was favorable, and the harvest before Thanksgiving was accelerated. In November 29th, ICE futures opened under the influence of new cotton harvest and the Hongkong issue.

The US Congress's bill on Hongkong, signed by Trump, has aroused strong opposition from China. If China and the United States can not reach an agreement in the short term, the US cotton export to China will die again. After the winter, the new cotton in the southern hemisphere will soon be on the market.

Last week, US cotton exports and shipments performed well, and China continued to purchase US cotton this year. Nevertheless, the Hongkong bill passed by the United States did not dare to rush the market. In November 29th, ICE futures still fell slightly. It is reported that China has summoned the US ambassador to China and strongly protested. According to the current situation, Sino US negotiations are likely to be derailed.

In the week, ICE futures rose 0.51 cents in March, but fell 0.52 cents in November. This year, the March contract has fallen 8.90 cents.