– Reporting Period 30 August – 12 September 2023 –
The ICE Cotton No. 2 futures skyrocketed at the beginning of the reporting period, testing the 90-cent mark anew. After the long Labor Day weekend, however, the futures dropped sharply again. By the end of the reporting period, the futures have shown once more a rising trend. Despite the fluctuations, the price level has increased significantly within the past month and moved about the upper 80s.
The physical quotations followed the current trend of the futures only to a limited extent. They experienced less fluctuations and thus remained more stable. The currently strengthening U.S. dollar had an additional decelerating effect.
The European cotton market recorded only little business activity. Merely a few enquiries and closed contracts were registered. The demand primarily focused on organic cotton while other varieties were less demanded.
The flooding in Greece that had been caused by the storm “Daniel” has also affected some cotton areas. There is still no detailed information on the extent, but an impact on the cotton quality is expected dependent on the duration of the floods as well as the state of the crop. Some cotton warehouses located in the flooded regions have also been affected with corresponding consequences for the stored goods.
Bremen, September 14, 2023