Cotton prices regain and may remain bullish in the short run
Cotton prices across global markets were largely driven by multiple factors as the commodity attracted speculative funds all the week following USDA’s bullish to neutral reports. US cotton futures added 3% or US cents 2.43 to May contract at US cents 84.52 a pound on the ICE. July contract stood at US cents 84.19 and December at US cents 78.72 per pound.
Global spot benchmark, the Cotlook A index gained US cents 3.20 on the week at US cents 94.40 per pound, but after gaining US cents 2.20 on weekend.
In China, cotton spot prices were mostly flat with hand-picked Xinjiang-origin grade-2128/3128 materials quoted at 15.60 Yuan a kg (US cents 112 per pound). The China Cotton Index inched up 25 Yuan to 15,722 a ton (US cents 112 a pound).
Indian cotton prices also jumped INR300-700 per candy for some specs and declined INR 300-500 for a few. Shankar variety was traded at INR41,200 per candy up INR300 on the week.
Cotton yarn market recovered gradually in China but was not as expected. Deals were mainly concluded for 32s and 40s yarns. In Pakistan, cotton yarn prices remained flat in Karachi but were seen rising in Faisalabad, over a recovery of demand and firming cotton prices In India, cotton yarn prices stayed unchanged as cotton prices recovered before dropping.
