Cotton prices down, India lowest in international market
Cotton prices were down today (17 January) across major origins but were still 11-15% higher year on year. Day on day spot prices lost around US cent 0.5 a pound. Indian cotton prices were the lowest among the major origins at US cents 90.05 per pound CNF China, while the highest was of Uzbekistan origin cotton at US cents 98.75 per pound. Cotton of African origin averaged US cents 95.30 per pound while Australian cotton prices were at US cents 97.15 per pound. Brazilian cotton prices were just India at US cents 91.60 per pound.
Yesterday, the US$ had hit a 3-year low which may start supporting the agricultural markets which have been weak excepting cotton as the US crop was hurt by the West Texas freeze and the hurricanes that happened in 2017 as strong demand continues to push prices higher over the last several months.
In Pakistan, the Karachi spot rate has been rolling over since past one week at PakRs7,745 per maund ex-Karachi, supported by lack of quality grade cotton and imports from India almost drying. Nearly half of cotton demand in the country is imported.
With Indian suppliers suddenly halting shipment of 400,000 bales of cotton to Pakistan
due to hike in Indian domestic market, local cotton yarn prices have apparently surged 15% since there is a dearth of the raw material and although there are other big suppliers in the international market like US, it will take a while to negotiate terms of purchase and price before a supply of cotton can become available to local spinners.
