Although the market is skeptical of the signing of a trade agreement between China and the United States, the two sides still seem to be trying their best to reach it. It is reported that the negotiating team is negotiating closely on how to lift trade sanctions and delay the implementation of the tariff increase originally scheduled for December 15. At the same time, it must meet the conditions of the first phase agreement, which is the prerequisite for China to continue purchasing American agricultural products.
On December 4, although the market really did not have any hope of reaching an agreement before December 15, and the Xinjiang-related bill passed by the U.S. Congress was strongly condemned by China, the active efforts of the negotiating team stabilized market sentiment, and the market speculated that China and the United States An agreement is still expected by the end of the year.
As of now, a total of 810 contracts have been delivered in December, all of which have been earned by a large company. Last week, the US cotton contract reached 281,500 bales, and China signed 39,000 bales. Foreign News believes that although China is in the process of stocking cotton, China is still the second largest destination for US cotton exports so far this year, after Vietnam. This week's US cotton export weekly report and next week's USDA supply and demand forecast will provide new guidance for fundamentals.
On December 4, driven by the continued advancement of Sino-US negotiations and technical buying, ICE futures rebounded slightly after four consecutive losses. Analysts said the support level for ICE futures is 62, .40-63.70 cents and the upper resistance level is 66-67.13 cents.