China is the largest consumer of U.S. cotton

China is the largest consumer of U.S. cotton

Hi our beloved customers:

We would like to update cotton news by Vigotex:

  • ICE 2023 Mar: Closed 85.10 c/lb, -1.79 cents;
  • ICE 2023 July: Closed 86.19 c/lb, -1.61 cents;
  • ICE 2023 Dec: Closed 84.36 c/lb, -1.22 cents;
  • Estimated volume: 36,445 contracts.

The cotton market was sharply lower Monday amid end of the month squaring. Such activity included grower selling, as well as certain speculators balancing their books. Traders also noted the political rhetoric over Taiwan heating up. Over the weekend, several high-ranking U.S. politicians have suggested that China will attempt to invade Taiwan within the next four years. The Biden administration has publicly declared it would defend Taiwan militarily. China is the largest consumer of U.S. cotton. 

              The Federal Reserve will begin its two-day interest meetings Tuesday. It will culminate with the central bank's announcement for interest rates Wednesday afternoon. Typically, higher interests run the U.S. dollar up, while exports are hindered.

              Crude oil prices extended losses on Monday in anticipation of interest rates increases by major central banks. The energy sector also came under pressure from indications of strong Russian supply despite a European Union ban and G7 price cap imposed over its invasion of Ukraine. Lastly, OPEC meets this week to decide upon the cartel's production amounts.