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In the U.S., consumer spending on clothing has been flat for the past year. However, it has been holding at levels that are 25% higher than they were in 2019. If U.S. consumers pull back on clothing purchases, it may hit the market just as retailers have caught up with consumer demand after the onset of the shipping crisis.

The breadth of losses throughout the commodity sector suggests a sea change in investor sentiment for the entire category. The effects of inflation, the withdrawal of stimulus, rising interest rates, and concerns about a possible recession could all be reasons explaining a reversal of speculative bets, and all could be contributors to the losses.

The war in Europe has contributed to the rise in input costs and reduced the availability of crops like wheat and corn. These crops can compete with cotton for acreage and may lend some support to cotton prices.

Most benchmark prices increased over the past month. Chinese prices decreased.

Most benchmark prices increased over the past month. Open interest is shifting out of the May NY/ICE futures contract and into July.