– Reporting Period 08 – 21 January 2025 –
The ICE Cotton No. 2 futures dropped at the beginning of the reporting period and reached a new low of the past weeks. The quotations recovered just slightly from there and stayed at a low level. Despite the favourable quotations, demand for cotton remained weak. Many spinning mills have continued operating at reduced capacity and were geared towards consumer demand.
Additionally, the Chinese New Year is just around the corner. Even less will happen on the market in the next two weeks than at present.
On the European market, the physical quotations have stayed at the same low level as in previous weeks. This market remained calm with only marginal demand, too. Expensive freight costs for some origins and a weakening euro meant that the benefits of low prices evaporated again. With the ongoing recession and unpredictable US political developments including many economic uncertainties, many market participants have again adopted a wait-and-see approach.