Cotton prices recover across markets, but moderates in Pakistan
Cotton prices recovered on the international markets although some remained flat on the day (18 January) across major origins. Day on day spot prices gained around US cent 0.3-0.5 a pound. Indian cotton prices rolled over among the major origins at US cents 90.05 per pound CNF China, while the highest was of Uzbekistan origin cotton at US cents 99.25 per pound. Brazilian cotton prices were at US cents 92.10 per pound, after gaining US cent 0.5 on the day.
The US March contract closed the day at US cents 82.63 per pound, gaining US cent 0.49 on the day. Meanwhile, the US$ lodged near a three-year low against a basket of currencies on fears of a possible US government shutdown adding to its underlying woes stemming from its eroding yield advantage. The dollar index stood at 90.518, having fallen to as low as 90.104 on Thursday, a level last seen in December 2014. It has lost 1.8 per cent so far in 2018.
African origin cotton was dearer by US cent 0.30 day on day averaging US cents 95.60 per pound on 18 January.
In Pakistan, the Karachi spot rate rolled back PakRs100 to PakRs7,645 per maund ex-Karachi. The drop could be due to increase in cotton production reported on the day. The country has produced 11.33 million bales up to mid-January, said a national daily, implying an increase of 7.6% over the corresponding period of last year when 10.54 million bales were produced. This shows that around 0.79 million more bales were produced this season (2017-18) so far.
In India, spot prices moved up INR80-140 per quintal with coarse varieties rising faster than the finer ones. Bengal deshi rose INR141 a quintal on the day while MCU-5/ Surabhi was up INR85. Benchmark Shankar-6 added INR113 on the day at INR11,642 per quintal or INR41,400 per candy.
