18 Aug | International Cotton Conference – REGION IN FOCUS: European Union
Opportunities for the EU cotton textile industry in international competition Bremen, 17 August 2022: (…)Read more
Reporting Period 8 September – 21 September 2022
At the beginning of the reporting period the New York Cotton Futures initially underwent some volatility, then dropped significantly towards the end. While USDA’s September WASDE report contained some positive news on the cotton situation in the US, the market also reacted to ongoing concerns about a global economic slowdown.
In the US, the expected additional interest rate hike by the FED beat down prices. Ongoing war in the Ukraine, the resulting energy crisis, rising inflation and adjustments in interest rates by central banks: many signs point to a recession.
In view of the volatile price development, demand from spinning mills is limited. Many buyers persist in a “wait-and-see” attitude. The growing uncertainty prevents long-term commitments. Currently, interest in larger import volumes seems to exist only in Pakistan, where losses due to flood damage have to be compensated. A stronger US-dollar also leads to more expensive imports.
Bremen, September 22, 2022