The market fell heavily at the end of the week and should continue to do so in the coming days for several reasons: 

• The uninterrupted rise in commodities, particularly cotton, is partly irrational in terms of supply and demand, which it was time to correct. 
• Far from being resolved, logistics problems are tending to increase with no lull in sight. The current results of the shipping companies are so disproportionate that there is no reason for them to try to resolve the current crisis, which brings back into play the famous axiom of "pooling losses and privatizing profits". Concentration in the sector, sometimes on conditions that defy all competition, has created giants that are difficult to control.
• The impossibility of shipping sold cottons causes an artificial increase in stocks and creates an impression of lack among spinners in a hurry to profit from the uninterrupted rise in yarn prices. 
• The return in force of COVID with a new variant, Omicron, is tetanizing markets that once again see the spectrum of containment and the slowing of the economy with anxiety and fatalism.

To date, the fundamental situation remains unchanged. Production is up everywhere, as is consumption, which is benefiting from a broad recovery. 

The overheating in India is about to be resolved with the curatorship decided by the Government. At the slightest risk of not being able to satisfy the local spinning industry, taxes could be increased. An export ban could also be imposed as in the 2011 season. 

On the currency front, the US dollar continues to strengthen at a steady pace even though Omicron slowed the greenback's advance at the end of last week. 

As worrying as the health and logistical situations are, we do not believe that we should see a collapse of all markets but rather a moderate regulation. This would allow a return to levels more in line with real conditions. 

The target of 105 USC/Lb for March 2022 seems to us to be realistic, even desirable, in order to relieve the market against the background of a further strengthening of the Dollar.