– Reporting Period 13 April – 26 April 2023 –
While the reporting period began with a slightly positive sideways movement, ICE Cotton No. 2 futures reached their highest level in more than six weeks on April 17, testing at the 85-cent mark. In the following days, the market moved steeply in the opposite direction to well below 80 cents. The short break in the downward trend at the end of last week stayed only briefly: At the beginning of the new week, news about another wobbler in the banking sector and the discussions about the US-presidential candidacy caused a drop in the markets overall, which took cotton with it.
Demand in the cotton market continues to develop rather cautiously. On the European market, sentiment remains poor in view of low demand and some postponements of orders. Occasionally, goods can be sold in the short term in view of the falling prices, but hardly anyone enters into long-term agreements. Overall, news of insolvent fashion companies is unsettling the market.