China Cotton network special news: On January 22, ICE cotton futures continued to strengthen, and the strong trend of the Dow Jones Industrial Average provided help for the cotton market. On Friday, all U.S. stock indexes hit new highs, and cotton has technically broken out, while the seasonal market indicates that cotton prices could reach the heights of the spring market.

The latest CFTC position report showed funds bought about 4,800 lots last week, reducing the net short position to 2,016 lots.

In terms of weather, the weather conditions in the world’s cotton producing countries are mixed, western Texas is still dry, but there was rain last week, excessive rain in the delta, abundant rain in Australia, especially Queensland, and a new round of rain is expected this week, dry and wet conditions in the South American cotton region are mixed, and central Brazil is dry.

On the same day, ICE cotton futures rose strongly, one is speculative short positions, the second is the fund long continued to buy, the stock market even a new high and the fall of the US dollar have a positive impact on the cotton market.

This week will see the release of US fourth-quarter GDP data, which has huge implications for the Federal Reserve’s interest rate policy, ahead of its meeting in the last week of January. GDP, which measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy, is now estimated at 2.0 percent, compared with 4.9 percent in the third quarter.

Energy markets rallied on the day, as cold weather and problems in the Middle East continued to provide positive momentum for the market. Despite the sanctions imposed by Western countries, Russia has become the largest exporter of crude oil to China. Affected by sanctions, Russia’s oil prices are much lower than those of other countries. Russia used to be the most important supplier of crude oil to Europe, but now most of its oil is exported to China and India.

Technically, ICE’s main March contract has broken through several resistance in a row, with the current rebound more than half of last year’s September-November decline, and for the first time since October 30, it is above the 200-day moving average, an important watch for technical investors.

Source: China Cotton Information Center