Cotton Posts Steepest Monthly Drop Since September 2022
Cotton fell 15.7% in September as economic-growth concerns and weaker-than-expected Chinese demand weighed on prices.
Key takeaways
- Cotton prices fell 15.7% in September, the steepest monthly decline since September 2022.
- Analysts cited growth concerns, weak textile orders and Chinese demand that missed expectations.
Cotton prices fell 15.7% in September, their steepest monthly decline since September 2022. The fiber ended the month at 0.7852 dollars per pound, after reaching 0.9374 dollars in August.
Futures and commodities specialist Zafer Ergezen said concerns about global economic growth and high interest rates raised fears of weaker cotton demand. He noted that the drop coincided with a Federal Reserve rate increase.
Saxo Capital’s Ole Hansen said weak orders, squeezed spinning margins and abundant, lower-priced Brazilian cotton made textile producers reluctant to buy at high prices. He added that Chinese demand fell short of expectations.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
