– Reporting Period 03 July – 16 July 2024 –
The ICE Cotton No. 2 futures were rather stagnating in the reporting period. They stayed in a small range around 70 ct/lb and somewhat above with slight ups and downs. The latest WASDE report that saw US production gain by one million bales also did not lead to the expected turmoil. South Texas experienced strong winds and rains due to hurricane Beryl, but apparently with only marginal impact on the crop. Looking back at the last few years, the coming periods were characterized by very high temperatures in the southern regions. It remains to be seen how this could affect this year’s crop.
With the dollar slightly weaker than in previous reporting periods, global demand for cotton currently remains at a low level compared to previous years.
Business in Europe was also quiet due to the current vacation season. Only the freight prices from Asia to Europe have been unusual. These are again at a level that is approximately 5-10 times higher than on other routes.