– Reporting Period 05 – 18 June 2024 –
The ICE Cotton No. 2 futures continued their downward trend. With only few exceptions, all trading days closed with price losses. In the middle of the reporting period, there was a change in the relationship between the trading months July and December. July dropped considerably stronger than December experiencing losses below the 70 ct/lb mark. December, however, developed rather sideways recently with a slightly positive trend and ended above the nearest future of July. Various factors exerted pressure on cotton prices: the good weather conditions in the U.S., the U.S. dollar exchange rate as well as the upcoming First Notice Day which is often leading to slightly declining futures. Some evidence has recently suggested that demand is recovering somewhat, partly due to the low futures. However, this trend has remained dampened by the strengthening dollar.
The physical quotations followed the downward trend of the ICE Cotton No. 2 futures, but to a lesser extent and depending on origin. The European market remained subdued. This is unlikely to change in the near future, as the summer vacations with the corresponding company holidays are just around the corner.