– Reporting Period 08 – 21 June 2023 –
The ICE Cotton No. 2 Futures once again experienced a slight downswing during the reporting period. However, July-futures dropped stronger than December quotes. Thus, the gap that had recently developed closed again. At the end of the reporting period, the trend even reversed, and July closed below the December quotes. As the trading month of July comes to an end, it loses significance.
The U.S. dollar has been facing a downtrend in relation to other currencies, including the Euro.
The bearish situation, however, attracted only little business. Apart from isolated demand in Far Eastern regions, the spinning industries have continued satisfying their need rather in the short-term. In addition, already agreed delivery dates have occasionally been postponed. The global situation including the Russia-Ukraine war, indistinct energy price developments as well as vague inflation and recession expectations make the spinning mills feel unsure about textile consumers’ behaviour. They remained in the wait-and-see attitude that has almost become a habit.