13 Oct | Question Time: Organic Cotton – Robust Demand
Interview with Maximilian Daebel, Vice President of Bremen cotton merchants Otto Stadtlander. In the (…)Read more
Reporting Period September 23 – October 6, 2021
Futures on Bullish Highs
In the last market report, the indices fell to a low at the beginning of the developments around the Chinese real estate company Evergrande. That appeared to be a starting point for buyers to take advantage of it. Since then, demand has risen sharply, and so have the indices. Over the current reporting period, the New York cotton futures were soaring, exceeding the one-dollar mark, and finally quoting even 110 ct/lb, a gain of over 2000 points within two weeks.
China increasingly appeared as a major buyer for US cotton. This attributed to several factors. There are uncertainties about the expected crop in India and China as well as the situation in Xinjiang. To be able to serve the western market, Chinese spinning mills have to procure cotton from other origins. Australia is not considered as a source due to the current conflict.
A strengthening dollar made cotton more expensive for buyers with foreign currencies, but this did not slow the increase.
Bremen, October 7, 2021