21 Jan | DNFI: Hortmeyer Re-elected Chair
During the annual meeting of the Discover Natural Fibres Initiative (DNFI) on January 13, (…)Read more
Reporting Period January 6,2022 – January 19, 2022
Market at Ten-Year High
In another soaring flight, the New York cotton futures surpassed the 120 ct/lb-mark once again and reached a new high since the start of the pandemic and for the past ten years. The last time the futures moved at these heights was in June 2011. This bullish market was additionally fed by the current WASDE report. In this report, the anticipated U.S. cotton production volumes were lowered while the global cotton consumption was continuously estimated at its highest level in 14 years. Thus, the stocks were also reduced.
U.S. cotton sales remained at solid levels during the reporting period. However, shipments lagged behind the necessary average, prompting concerns that contracts could be canceled in the wake of deliveries not being on schedule. Overall, the situation in the logistics sector is the cotton trade’s Achilles’ heel right now. Among other things, it is currently impossible to obtain Brazilian cotton for Europe. There are quantities available, but containers and freight options are lacking.
Bremen, January 20, 2022