On September 10, ICE cotton futures rose strongly during the session, and the bulls continued to buy. The industry expects that the USDA supply and demand forecast will lower US cotton production, increase US cotton exports, and reduce US cotton ending stocks. At the same time, with the continued implementation of the Sino-US agreement and the support of China’s additional quotas, the market expects that China will continue to purchase US cotton in large quantities. This is the main reason why bulls are reluctant to give up their positions easily.

In the past few days, the news that the United States will ban the import of cotton and all textiles and clothing produced in Xinjiang, China has intensified. Even the European Union has begun to point fingers at China and began to restrict textiles produced in certain regions. Trump is said to be considering a similar ban. The Sino-U.S. relationship has also made the bulls afraid to act rashly.

In terms of weather, the entire cotton-producing area of the United States has heavy rains. In the next five days, there may be heavy rains in central Texas, the delta, and the southeast. At present, the new cotton flowers in the United States are speeding up spitting out. The heavy rainfall at this time obviously poses a threat to the output and quality of new cotton.

According to market news, the spot market was significantly active after the ICE futures price fell a few days ago, which also stimulated traders to speculate in the past two days. With the recovery of textile production in Asia, cotton demand will gradually return to the right track. Analysts expect a new round of purchases in China, Vietnam and Turkey, and the reduction in cotton production in Pakistan will also stimulate textile mills to expand imports of cotton.