– Reporting Period 22 January – 04 February 2025 –
Since the beginning of the reporting period, ICE Cotton No. 2 futures have been trending downwards, reaching a new low comparable to the level of August 2024. At the end of January, March futures bottomed out at just under 66 cents/lb and were only slightly above this margin in February. Despite the low quotations, demand did not pick up. China, the world’s largest cotton importer, has been celebrating the Chinese New Year, during which many Chinese people visit their hometowns. As a result, economic life is at a standstill in many cases and spinning mills are also not seen on the market. In addition, the US dollar exchange rate has remained strong, more than offsetting the existing price gains.
The physical quotations of some origins stayed at an almost unchanged level and did not follow the downward trend of futures traded at the ICE. Demand tended to focus on more specialized niche products in smaller quantities.