Beware Of Weakening International Cotton Prices

Risk aversion in the international financial market is heating up and beware of weakening international cotton prices. The number of first-time jobless claims in the United States increased last week, but retail sales unexpectedly increased in August, raising the market's expectation that the Federal Reserve may reduce stimulus measures in advance. The market is waiting for the Federal Reserve's interest rate decision next week. In the international cotton market, the excellent rate of American cotton has increased, and the cotton harvest in Brazil has accelerated. In September, the US Department of agriculture latest predicted that the global cotton output in 2021 / 22 will be increased by 162000 tons to 26.037 million tons month on month, a year-on-year increase of 6.4%, and the consumption will be increased by 176000 tons to 27.027 million tons month on month, a year-on-year increase of 3.75%. Retail sales of terminal clothing and clothing stores in the United States increased slightly by 0.13% month on month in August, mainly driven by the opening season. Considering the large fluctuation of the data itself, the judgment of slowing consumption growth in the third quarter is still maintained. With the increase of new cotton supply in the northern hemisphere, there is resistance to the rise of international cotton prices. The short-term market is worried that the Federal Reserve meeting next week may reduce the scale of asset purchase ahead of time, and the risk aversion in the financial market is heating up, so we should guard against further weakening of the international cotton price.