In July 20th, the rise in the US dollar and the expectation of high cotton production in the United States led to a decline in ICE cotton futures, a 8-103 drop in the monthly contract and less than 18000 hands in volume.

The December contract narrowed and the settlement price was 73.01 cents, very close to the support price of 73 cents.

The main reasons leading to the decline of ICE futures are: first, under the influence of the EU bank stress test approaching the end, investors are hedging against the risk of buying dollars, thus pushing the US dollar up.

The ICE dollar index stood at its highest level in 6 days on 82.94 points. Secondly, the ICE exchange's position report shows that ICE futures for the first time in the past 13 months turned into a net short position, with a net short lead of 2.3%, while last week a net bull rate of 1.9%. Finally, the good weather conditions in the US cotton producing area are conducive to cotton growth.

On the same day, the lowest price of ICE futures contracts in December reached 72.96 cents, the lowest in 5 months.

From the short-term and medium-term indicators, the market will continue to maintain a weak position.