– Reporting Period 28 Aug – 10 Sep 2024 –
Following the upswing in the last reporting period, the ICE Cotton No. 2 futures experienced rather a sideways movement in this reporting period. However, this sideways trend was anything but stable. The futures have swung back and forth within a range of about 250 points without showing a clear trend. Several factors influenced these developments. The favourable climatic conditions in some US cotton-growing areas have led to crop figures forecasted higher. The futures recorded a downswing due to risen supply expectations. The current exchange rate of the US dollar made the purchase of cotton for foreign spinning industries cheaper. The futures experienced an upswing due to stimulated demand on the short term.
Demand, however, has remained feeble. In general, the transition to September has always been regarded as the period with the weakest market activities. There is no difference in these turbulent times.
Against the backdrop of current uncertainties due to ongoing crises, all market participants are reluctant to define more concrete longer-term plans and strategies and to invest their money.