– Reporting Period 10 – 23 January 2024 –
After a quiet turn of the year, the cotton market has gained momentum again. The ICE Cotton No. 2 futures rose more strongly, as U.S. cotton in particular is currently experiencing a surge in demand. During the reporting period, the futures increased constantly with only a few exceptions and came close to the 85-cent mark most recently.
Even though demand improved again on the U.S. market, the mood remained rather subdued globally. Textile and clothing demand was still restrained in many places, thus the need for yarn was correspondingly low. The spinning mills acted rather selectively by rather purchasing raw materials at short notice.
The war-related relocation of sea routes from the Far East via the southern tip of Africa has not only extended transportation times. It has also been reflected in freight rates. The rates for some routes have more than doubled. These and other additional burdens have been difficult, though, to pass on to retailers.