– Reporting Period 25 Sep – 08 Oct 2024 –
Hurricane Helene hit the US mainland with severe force leaving behind heavy losses. It is estimated that 300,000 to 700,000 bales of cotton are also damaged. Added to this is the potential loss of quality in the upcoming harvest. Hurricane Milton is currently moving across Florida from the Gulf of Mexico. This time, the cotton fields will probably only be marginally affected.
Dockworkers in 14 ports along the east and Gulf coasts went on strike for three days, one of the biggest strikes in over 50 years. Even though short-term agreements have ensured the resumption of work, many shipments were delayed, also in the cotton sector.
The Chinese economy has been weakening lately. Moreover, China’s National Day holiday with its Golden Week curbed demand. Overall, demand is currently only moderate.
Bearing in mind the various events in the reporting period, it is surprising that the ICE Cotton No. 2 futures did not show any clear trend moving sideways. Even though prices moved up and down, they remained within a range of around two cents.