Reporting Period 17 – 30 November 2022
ICE Cotton No. 2 futures trended slightly downward during the reporting period. The overall rather degressive trend recorded short-lived upward movements, especially towards the end. Lately, the biggest concern in the market has been the lack of demand. This was combined with fears as to whether the demand figures have already been adequately revised in the current forecasts. Various cancellations of purchases supported the ongoing price weakness. Uncertain prospects for the near future characterized the expectations.
Many spinning mills were only running at a lower degree of capacity utilization. This was partly due to a weakened order situation and partly to rising energy costs. Orders were cautiously calculated and predominantly covered short-term need. Long- or at least medium-term strategies could not be identified during the constant ups and downs.
The European market was no exception: Restrained demand, a wait-and-see attitude and uncertain planning conditions slowed down the market.