On April 6, ICE futures tried to correct the severe oversold caused by excessive decline, and the skyrocketing Dow Jones index also brought great stimulation to the market.
As the number of deaths from COVID-19 slows down in European countries, including France and Italy. U.S. stocks rose sharply on Monday, with all three major stock indexes rising at least 7%, after the number of new deaths in New York state, the worst-hit state in the United States, dropped from Friday, sparking optimism that the spread of the epidemic will slow.
On Sunday, the number of new deaths reported in New York fell slightly from the previous day for the first time in a week. New York State Governor Cuomo said on Monday that the hospitalization rate of infected people in New York State, the worst-hit state, has dropped, and the increase in deaths has slowed. The latest statistics on the COVID-19 epidemic released by Johns Hopkins University on the 6th show that there are more than 350,000 confirmed cases in the United States. The United States currently has the most confirmed cases in the world.
Data show that as of 15:30 on the 6th, Eastern Time (3:30 on the 7th, Beijing time), the number of confirmed cases of COVID-19 in the United States rose to 352,546, with 10,389 deaths. Data show that New York State is the most severely affected area, with 130,689 confirmed cases and 4,758 deaths. The situation remains highly uncertain, with the epidemic halting business activities and locking down cities, prompting governments and central banks around the world to take unprecedented fiscal and monetary stimulus measures.
Data released by the U.S. Commodity Futures Trading Commission (CFTC) on Friday showed that as of the week of March 31, cotton speculators increased their net short positions in ICE cotton futures and options by 1,880 lots to 24,131 lots, a serious It has been oversold for weeks. As oil prices recover and U.S. stocks rebound, cotton investors are less willing to continue shorting the market.
On April 6, ICE futures surged in volume. Speculative short sellers realized that the early selling was excessive and looked for opportunities to liquidate their positions. The three major U.S. stock indexes also collectively soared by more than 7%, and bargain hunting appeared in many commodities such as live cattle, crude oil, and gold. The biggest thing that affected the financial markets that day was the slight slowdown in the growth rate of the number of infections in New York State.
Since mid-January, ICE futures have plummeted by nearly 30 cents due to the impact of the epidemic, but there has been no significant change in U.S. cotton planting intentions. However, considering the huge drop in cotton prices after the intention survey in early March, the actual sown area in the United States will see a greater decline at the end of June. Regarding the closure of textile factories that the market is worried about, so far textile factories have basically not canceled a large number of orders.
This Friday is Good Friday (Easter), and financial market transactions are suspended for one day. At Easter last year, cotton prices rose to the highest point of the year (79 cents), and then continued to fall. This Easter may be the opposite, and cotton prices will be the lowest point of the year. </p
