Global cotton indices grew upwards over the past few weeks. The NY/ICE December contract pushed through resistance near 82 cents/lb around the middle of July.
“With the USDA’s reduction to its US production forecast, December prices climbed to levels near 90 cents/lb,” Cotton Incorporated said in its Cotton Market Fundamentals & Price Outlook – August 2023.
Cotton Inc added that the A Index also shifted higher around the middle of July, with values rising from 91 to 97 cents/lb over the past month.
After a pause, Chinese cotton prices or the China Cotton Index resumed its upward trend last month.
In international terms, Chinese cotton values increased from 110 to 114 cents/lb and in domestic terms, prices rose from RMB 17,400 to 18,100 per ton.
“The RMB was relatively steady against the dollar, near RMB 7.20 RMB for one US dollar,” Cotton Inc informed.
Indian spot prices of Shankar-6 quality rose from 86 to 92 cents per lb over the past month, while Indian domestic prices climbed from INR 55,500 to INR 60,000 per candy (1 Candy = 356 Kgs).
The report further stated that Pakistani prices were stable in international terms, holding near 75 cents per lb. In domestic terms, prices increased from PKR 17,000 to 17,800 per maund (I Maund = 37.32 Kgs)
“The latest USDA report revealed a drop in the global cotton production forecast for 2023-24 by 2.7 million bales and a slight increase in world mill-use,” Cotton Inc mentioned in the report.
The US saw the largest production revision, a decrease of 2.5 million bales, while the global trade forecast was raised by 395,000 bales.
Global cotton indices grew upwards in the past few weeks
