– Reporting Period 08 – 21 May 2024 –
During the first half of the reporting period, the ICE cotton No. 2 futures dropped sharply, arriving even below the 75 ct/lb mark for a short time. Thus, the nearest future reached a low seen last in December 2020. Prices recovered immediately afterwards, albeit only weakly. At last, the nearest future settled around the 76 ct/lb mark, while the December future remained below that level. Basically, experts regard the good progress of plantings and good weather forecasts as the reason for declining prices. Weather developments are currently playing a more prominent role in the assessment of price movements than demand developments.
Cotton demand rose but remained weak in the past two weeks despite lower prices. The spinning industries acted somewhat more agile on the European market. However, demand focused on nearby origins.
China remained the largest purchaser of U.S. cotton. Whether and how much the current trade dispute between the U.S. and China will affect cotton remains to be seen.