The Virus Has Firmly Controlled The Cotton Price Market.

 

The new crown virus epidemic has changed the lives of people all over the world in many ways. Factory production is reduced, consumption activities are reduced, school closures, festivals, gatherings and performance activities are cancelled, and many other restrictions are strictly restricted. Although the "black swan incident" will slowly pass away, things will gradually improve, but everything will not return to the original appearance after the event.

 

Last week, US cotton exports exceeded expectations, and US cotton contracted volume and shipments reached a new high, and the number of purchases in China continued to increase, but ICE futures were flat. On that day, the US Dow Jones index fell 900 points again, but it still kept cotton slow. In the face of such a strong base, cotton is still so weak, which has increased the market's concern about the outbreak of the new crown virus pneumonia.

 

At present, the virus has firmly controlled the market trend, even the biggest fundamental good will not help. If cotton prices want to rise, they will have to look at the "face" of the Dow. The US stock market must go up to boost market confidence.

 

Export sales report released on Thursday by the US Department of agriculture (USDA) showed that as of February 27th, the US 2019/2020 annual export sales of mainland cotton increased by 395 thousand and 500 packs, the highest in the market since the year, an increase of 84% over the previous week, an increase of 40% over the previous four weeks. During the week, the US 2020/2021 export volume of mainland cotton increased by 53 thousand and 200 packages. The United States exported 478 thousand and 200 packages of upland cotton, the highest in the market since the year, an increase of 48% over the previous week, but increased by 26% over the previous four weeks.

 

Ed Jernigan, chief executive officer of Jernigan Global, a cotton textile supply chain management company, said export trade in many different markets was very active due to price collapse. Demand has been good, supporting the market, but it is not yet clear how the virus spread to Italy and the United States and other places, will affect clothing sales and future needs.

 

The spring cotton sowing in 2020 will begin in a few weeks, but field operations in the southeastern United States are rather slow due to continuous heavy rainfall. Previous surveys show that the US cotton planting area has fallen before the outbreak of the virus. Today's bad weather makes the sowing prospect even more worrying.