– Reporting Period 19 July – 01 August 2023 –
The ICE Cotton No. 2 futures increased during the reporting period. The October futures moved around 86 cts/lb. Concerns were not only raised by the ongoing heat wave in the South and Southeast of the U.S., but also by the climatic conditions in India and Pakistan. The nearest futures recorded a short-term boost during the past week reaching 89.98 cts/lb, their highest level since November 2022. Alike the financial markets, the cotton futures thus reflected the hopes that the central banks’ interest rate peak might soon be attained. The global cotton demand was rather weak during the reporting period. The European market was still on the holidays in many places.
The overall development of the futures in 2022/23 is shown in the chart below. Since the end of last year, a quite stable sideways movement can be observed, especially in comparison to the previous season. Since November, the futures have been around 83 cts/lb with a fluctuation range of 75.00 to 89.98 cts/lb.
