– Reporting Period 23 Feb – 08 Mar 2023 – The ICE futures Cotton No.2 tended to move rather sideways during the two weeks of the reporting period. Towards the weekend, they rose for a short period, only to fall again in the middle of the week. However, they remained within the range of 82 to 86 ct/lb and did not at all exceed or undercut the limits of the range. The range limits are regarded as trading triggers by experts. At the end of the reporting period, the index value was close to the initial value.
Demand increased slightly, but still remained very subdued. The latest USDA forecasts show an increase in ending stocks and a further reduction in cotton consumption. This is likely to add to uncertainties about market developments.
The European market in particular recorded inquiries but few deals. Negotiations were rather laborious. The price declines were offset by a strengthening dollar, which offset possible price advantages.