The real stars of the moment are the financial markets, gripped by euphoria after the GOP's Rising Tide in the US elections. The dollar is approaching parity against the euro, and crypto-currencies are reaching unprecedented heights, even though their value remains to be demonstrated beyond the hyper-speculative aspect of this tool, which is particularly useful for money laundering. However, this upturn is also helping to replenish the coffers of governments, which are now clamping down on all those distracted crypto holders who forget to declare their accounts....
It's a good thing that international activity is so exciting, because it's not cotton that's been able to brighten up our days, so dull has our market been for months.
Ginning is in full swing on every continent, and the quantities of cotton produced are now well known. There is more cotton than we need. Despite a violent liquidation of the December 2024, 70 USC/Lb remains an equilibrium point.
Spinning mills are testing the market intermittently, trying to take advantage of every moment of weakness.
Concern is palpable in Africa, where there is still some old crop left, and where guaranteed prices to growers make it impossible to sell above cost; losses and doubts are piling up...
Investment funds remain in a bearish position, preventing any price surge. Spinners are not rushing to buy either. Nothing seems likely to awaken our market in the immediate future, and even if we're on the verge of fatigue, we're going to have to be patient
Source: Mambo