– Reporting Period 14 – 27 August 2024 –
Overall, the ICE cotton No. 2 futures have risen during the reporting period. From the beginning of the second reporting week, the December futures broke the 70 ct/lb mark several times but stayed just below the magic threshold at last. The reasons for the upward trend included a more positive assessment of the economic development in the United States and increasing indication of an interest rate reduction by the Federal Reserves in September. Speculative activities also had a potential impact as well as growing concerns about the crop quality due to climatic conditions.
The unimproved weak cotton demand, but also increasing tensions between the US and China, among other factors, have ultimately weighed down the December futures just below the 70 ct/lb mark.
The US dollar exchange rate reached its lowest level of the year in the reporting period.
