ICE Cotton Futures Rose More Than 1%, As USDA Reduced Production And Year-End Inventory Estimates.

Foreign news December 10th, Intercontinental Exchange (ICE) cotton Futures closed more than 1% on Tuesday, after the US Department of agriculture (USDA) downgraded us and global 2019/20 production and inventory estimates in monthly supply and demand reports.

The most active trading month in March, the contract closed up 0.55 cents, and the settlement price was 65.93 cents per pound.

Keith Brown, partner of Keith Brown and Co, a cotton brokerage company, said, "USDA has adjusted the US cotton year-end inventory estimate from 6 million 100 thousand to 5 million 500 thousand packs. Globally, the US Department of agriculture has lowered production forecasts for Pakistan and India. All of these are market friendly. "

"However, the market is still worried about the deadline for us to impose a new tariff on Chinese goods in December 15th."

In December, the US Department of agriculture (USDA) released the December supply and demand report. The US cotton production forecast for 2019/20 was reduced to 20 million 210 thousand bales, and in November, it was estimated to be 20 million 820 thousand packages, mainly due to the reduction of 500 thousand packages in Texas, the main producing state.

In the year of 2019/20, cotton inventories in the US were reduced to 5 million 500 thousand bales at the end of the year, with an estimated 6 million 100 thousand packages in November.

The Ministry of agriculture also revised the forecast of global cotton production in 2019/20. The global output is 121 million 110 thousand packs, 830 thousand less than the 121 million 940 thousand packages estimated in November, but 3 million more than that of 2018/19.

In the year 2019/20, cotton inventories in the end of the year are estimated at 80 million 320 thousand bales, with an estimated 80 million 800 thousand packages in November.

As of December 9th, ICE can deliver 2. Stage cotton Contract inventory fell to 41540 packages, the last trading day was 41625 packs.

Investors continue to pay attention to the progress of Sino US trade negotiations, and the new US tax deadline is December 15th.

Rose Commodity Group research and Analysis Director Louis Rose said. "In our view, the possibility of signing a trade agreement between China and the United States this year is very small."

"But many analysts expect to reach an agreement by December 15th."

The total volume of futures market decreased by 9439 to 18525 hands. Data show that the total position of the last trading day decreased by 1934 to 194900 hands.

As of December 9th, the number of cotton futures contracts for the 2 phase ICE deliveries dropped to 41540 packages, the 41625 day on the previous day.