Cotton Prices Will Turn Over In March.

In March 2nd, the US Dow Jones index jumped up and down, first down 500 points, and then increased 500 points. ICE cotton futures rebounded sharply under the stock index's red trend, and once rose 250 points in the intraday.

On the first day of March, the global stock market rose sharply. Although the new crown virus is still a top priority in the world, it continues to make traders and investors nervous. However, central banks adopted positive monetary policy to boost market confidence. Federal Reserve Chairman Powell said on Friday that if the situation is necessary, the Bank of America is ready to take action.

Last weekend, China released the February PMI index, the lowest of 35.7, far below 45 of market expectations. The shrinkage of China's manufacturing industry has become a reality. Because the factory has not fully resumed, the global supply chain system has also been affected, and it is expected that China's economic data in the late stage is still not optimistic.

In addition to the rebound in the US stock market, the sharp fall in the US dollar index also stimulated investors to buy. In a recent speech on the new crown pneumonia, US President Trump accused the Fed's interest rate policy of causing the US dollar to remain strong. The depreciation of the US dollar will promote the export of us products, which is an important advantage of the fundamentals.

From the data of CFTC, last Friday, the fund was net long with 22400 hands, with a reduction of nearly 10 thousand hands in one week. This Thursday's US cotton export weekly report will reflect market demand during the cotton price slump last week. It is reported that after last week's cotton price plummeted, textile mills opportune increased procurement, and also provided support for stabilizing cotton prices.