Market Dynamics: Global Demand Increases, Cotton Price Tends To Be Better

 

The weekly US cotton export report on Thursday seemed reasonable. Last week, the signing of us upland cotton decreased slightly, but China continued to import and US cotton shipment remained stable. In the week of December 16, the U.S. annual cotton export sales in 2021 / 2022 market increased by 24.39 bales, 15% lower than the previous week, 21% lower than the average of the previous four weeks, and 68700 bales were exported to mainland China.

In 2022 / 2023, the net increase of cotton export sales in the United States was 49400 bales. In that week, the shipment volume of upland cotton exports from the United States was 1311000 bales, unchanged from the previous week and 27% higher than the average of the previous four weeks. Among them, 58300 packages were exported to China.

According to foreign power analysis, with the market on the impact of the Omicron variant strain of concern ease, cotton demand prospects are strong. It's the week before Christmas, so sales are pretty good. Export shipments have increased and the US will ship more cotton as the supply chain crisis is resolved.

Keith brown, head of Keith brown and CO in Georgia, said there seems to be a general underlying feeling among investors that the Omicron variant may not be very serious and that commodity prices will rise in the new year.

On Thursday, U.S. stocks closed strong for the third consecutive session, with the S & P 500 index hitting a record closing high, as encouraging news eased investors' concerns about the impact of the epidemic on the economy. International oil prices rose in quiet trading amid signs that the most severe impact of the Omicron variant may be avoided, despite travel restrictions imposed by many countries due to the surge in new infections.