Reporting Period 03 – 16 November 2022
After the decline in the last reporting period, the ICE cotton futures again experienced a leap during the past 14 days. With the index rising, the spread between the lowest level of the last report to the peak of the current report amounted to over 1,600 points. Many times, short-term speculative transactions have led to erratic price movements lately. Bullish signs on the horizon, such as, among other things, expected relaxations of the COVID lockdowns in China, drove hedge funds to increase their market participation once more.
The logistic situation has eased somewhat. Freight rates have decreased, and analyses revealed that additionally provided capacities have ensured cargo hold. However, schedules were still affected, and the availability of container has remained an issue.
The European market has been quiet. Due to the fluctuating prices, spinning mills remained in a wait-and-see mode and provided little demand.
The U.S. dollar lost strength against the euro. At the end of the reporting period, the dollar was about four cents above parity.