Viruses Worry That Planting American Cotton May Be Lower.

 

In order to cure the "loss of blood" domestic economy, the Trump administration offered trillions of dollars to support the plan, but so far, his tourniquet has not helped. In half a month, the number of new crown viruses in the United States will increase to tens of thousands, and cotton prices will not go back.

 

In recent days, rainfall in western Texas has been favorable for the upcoming cotton planting. In March 31st, the US Department of Agriculture announced the intention to predict cotton planting. Before the outbreak, the US cotton area is expected to decrease, but considering the outbreak and concerns about the virus, the US cotton area may be lower.

 

India has already predicted that textile exports will probably drop by 40% this year. Traders are also worried that Vietnam will be involved in this catastrophe. Vietnam is now the first largest buyer of US cotton.

 

On Friday, the US Department of agriculture will issue a weekly report on US cotton exports. The market urgently needs to continue to see high figures. This shows that the epidemic in Asia, especially China, has indeed improved. But in the current market situation, even a high figure can boost the market? Maybe only when the virus is completely controlled can the price rise again. Cotton prices will not go back easily until the peak of the epidemic is expected in the financial and commodity markets.

 

In March 18th, ICE futures continued to tumbled under the influence of the Dow and the sharp drop in oil prices. The US Dow Jones index fell 2000 points, international oil prices fell 6 U.S. dollars, gold fell 40 U.S. dollars, while the dollar index soared more than 200 points, clearing price exceeded 100. The continued rise in the US dollar is entirely a result of investor risk aversion.