China Cotton Reserve Auction Update

Yuan Associates has provided three reasons that the auction should not have a major impact on the market.

-The key intention of the auction is to improve the quality of the national reserve through rotation.

-The auction will satisfy the mills’ structural demand for low quality cotton.

-The flexible mechanism of the auction and the expectation of an incoming reserve refill will provide support for the cotton price.

Many individuals believe that the auction will create more space for China to purchase U.S. cotton, in order to trend towards meeting the Phase One Trade Agreement. The Chinese government has not confirmed these speculations. See the document below for the full report.

Click here.

More Advocacy Issues

Price Loss Coverage Payments for 2019 & 2020 Marketing Years Projected by Mississippi State University

August 7^th, 2020

Click here for projections.

ACSA Joins Coalition Letter Addressing Freight Weight Limits for Food, Fuels, Feed, and Fiber

August 7^th, 2020

Click here for letter.

The White House & Senate Agreement Draft for COVID-19 Relief Package

July 23^rd, 2020

The PDF below provides an outline of the next COVID-19 relief package agreed upon by The White House and Senate Republicans. Senate Republicans plan to release the plan today to allow for the Senate and House to begin discussion. Click here for outline.

Bangladesh Textile Mills Association Writes ICA Regarding Difficulties to Fulfill Their Contracts

July 23^rd, 2020

On July 18th, the Bangladesh Textile Mills Association (BTMA) wrote the International Cotton Association (ICA) in regarding to their inability to fulfill contracts due to the current environment. On July 22nd, ICA replied to BTMA by stating “the legal concept of force majeure is intended to cover those circumstances that could delay or impede the […]

CFTC’s Open Meeting

July 23^rd, 2020

On July 22nd, U.S. Commodity Futures Trading Commission held an open meeting to consider two items: (1) Final Rule: Capital Requirements for Swap Dealers and Major Swap Participants; (2) Proposed Rule: Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swaps Participants. See PDF below for key takeaways and details provided by Delta Strategy […]

CFTC’s Market Risk Advisory Committee Meeting

July 22^nd, 2020

On July 21st, U.S. Commodity Futures Trading Commission’s Market Risk Advisory Committee had a meeting. See PDF below for key takeaways and details provided by Delta Strategy Group. Click here.