ICE'S COTTON FUTURES ARE TWO YEARS HIGHER THAN THE 90 CENTS MARK

Driven by the continuing deterioration of crop conditions, and further boosted by the strong food market, the ICE cotton futures on Thursday, for the first time since the beginning of 2024, broke the critical threshold of 90 cents per pound. ICE cotton futures have continued to rise steadily in recent weeks, with cumulative increases of over 10 per cent so far this month, supported by deteriorating crop prospects as a result of weather distress. According to the Managing Director of Lakefront Futures and Options in Chicago, recent crop inspections have shown a significant deterioration in crop growth in Daejeon, and cotton has been affected by these concerns. The latest crop growth progress report released earlier this week by the United States Department of Agriculture (USDA) showed a further decline in American cotton performance, currently at 37 per cent, compared to 54 per cent in the same period last year. The El Niño climate phenomenon is expected to be particularly strong this year, which significantly alters rainfall patterns and may have a continuing impact on commodity prices. In addition, rising to three years of high wheat futures in Chicago has created additional support for cotton prices。