– Reporting Period 27 March – 9 April 2024 –
Overall, ICE Cotton No. 2 futures lost considerable ground during the reporting period. After the publication of the first, for some observers surprisingly low data on plantings in the USA, the market seemed to pause for a short time in its steady decline. However, the downward trend then accelerated. Most recently, the market remained in a wait-and-see mode looking forward to the latest USDA WASDE report, which will be published at the end of this week.
It had already been difficult to explain the soaring prices of the previous weeks with fundamental data. The downturn was hence attributed to speculation as well. Overall, the decline was seen as a necessary correction, as the demand side in particular has continued to show hardly any signs of recovery. The physical market followed the downturn, which was welcomed as a more realistic representation of the market situation.
In addition to subdued demand, the dollar rose slightly, making US cotton somewhat more expensive for foreign customers.