– Reporting Period 22 May – 04 June 2024 –
Following the low in the last report, ICE Cotton No. 2 futures recovered briefly, only to drop rapidly to a new low. At the beginning of the reporting period, July prices initially climbed to over 82 ct/lb, but then fell sharply again and finally settled at just over 73 ct/lb. According to a cotton farmer, prices slipped below the cost of cotton production. Experts cited a mix of factors causing these developments: Changing weather patterns, weak demand and speculation, macroeconomic influences, but also growing competition from other growing regions, such as Brazil. China remained the main buyer of US cotton, while other countries only demanded marginal quantities.
Physical quotations followed the new volatility in New York prices, albeit not quite as meticulously. On the demand side, however, the European market remained quiet, and the spinning mills acted cautiously. Purchases were rather made on the basis of short-term requirements.