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Reporting Period 01 Jul – 14 July 2021
Stable Prices with Slight Upwards Tendency
The New York cotton futures rose by trend during the reporting period and finally reached the 90 cts/lb mark. The market remained calm without any major events but with stable demand.
External factors also had a rather balancing effect. For instance, the USDA reduced acreage planted to cotton in its latest planted acres report. The results of US cotton crop quality tests, however, were much better than expected.
Regarding physical quotations, the logistics remained a pain in the neck of traders. Freight rates continued to increase. Empty spaces on container ships for short term delivery were scarce. In Asian regions as well as in Europe, ships have lain at anchor in front of the ports waiting for loading and unloading. Consequently, some shipping companies have currently refrained from calling at certain harbours. For satisfying the demand, stocks are being reduced, especially for supply chains requesting just-in-time delivery. Many spinning industries do not seem to be aware of this situation which is reflected in their price expectations.
Bremen, July 15, 2021