Reporting Period 06 Oct – 19 Oct 2022
ICE cotton futures were subject to a bearish trend during the reporting period, falling below the 80 ct/lb mark for the first time in a long time. The futures often moved at the trading limit in both upswing and downswing, showing a downward trend in total. Fears about the expected recession were regarded as cause by many experts. The market suffered from anxiety about unknown and difficult-to-assess future developments, which drove many to take a wait-and-see approach.
Many spinning mills curbed their production output and reduced their activities. Some even temporarily stopped production. In the meantime, there was a slow changeover from the old to the new crop, enhancing the availability of cotton again. This was beneficial for Europe, enabling a timely supply of cotton from closer regions. The logistical situation, however, continued being a concern for the trade.
The European market was calm recording only weak demand for cotton. The situation was characterized by expected changes in consumer behaviour in the textile sector due to rising costs in other areas of life, especially energy.