– Reporting Period 07 – 20 February 2024 –
The ICE Cotton No. 2 futures initially maintained their momentum from past weeks and continued to rise to almost the 95 ct/lb mark. At last, however, this high level could not be kept up. Observers have continued to attribute the comparatively high price gains primarily to speculative transactions, as this development has not been based on a recovery on the demand side. In addition, the prices of competing agricultural products have tended to fall, making cotton more attractive. Increasing volatility on the cotton market is to be expected due to the uncertain market and economic situation.
The physical quotations did not follow the trend of the futures which refer to the US market. Spinning mills accepted these high prices only to a limited extent, particularly in view of their ongoing weak order situation.
The US dollar recorded a quite clear sideways trend and closed the reporting period at almost the same level. The crisis in the Red Sea remained unchanged, including the resulting consequences for logistics.