Monthly Economic Letter: February 2023

February 13, 2023

There are several potential signals that a turnaround in business conditions could be emerging. In its latest round of updates, the International Monetary Fund (IMF) lifted projections for global economic growth in 2023 and 2024. While growth is still expected to be sluggish, the reversal in the direction of the updates may be notable.

Read More

Monthly Economic Letter: December 2022

December 12, 2022

Given widespread reports of a slowdown in mill demand, the decrease to USDA consumption this month could have been anticipated. China is central to global cotton demand, and the continued inversion of traditional relationships between Chinese prices and other benchmarks may signal that a global recovery in demand is not yet underway.

Read More

Monthly Economic Letter: November 2022

November 10, 2022

The recent volatility in NY/ICE futures has been attributed to various factors, including short covering in the futures market and import interest from China. The steep increases in early November can also be interpreted as a sensitivity to potential increases in demand for U.S. exports.

Read More

Monthly Economic Letter: October 2022

October 13, 2022

Price decreases over the past month indicate that demand-related concerns have been winning the contest between the competing storylines involving a weaker downstream outlook and lower production expectations in a couple key cotton-growing countries.

Read More

Monthly Economic Letter: September 2022

September 13, 2022

The decline in Chinese prices relative to those from the rest of the world may affect trade in the new crop year. China is normally the world’s largest importer of both cotton fiber and yarn. However, significantly lower domestic prices encourage consumption of domestically grown fiber and should discourage imports.

Read More