INSIGHTS
- In the past month, global cotton prices have generally declined, with significant shifts in benchmarks and contracts.
- NY/ICE December contract prices fell to 80 cents per pound, and the A Index dropped to 89 cents per pound.
- Chinese cotton prices decreased to 106 cents per pound, while Indian prices slightly reduced to 87 cents per pound.
In the past month, global cotton benchmarks have seen a general decline, according to Cotton Incorporated. The most notable shift in open interest has moved from the NY/ICE December contract to the March contract, with the latter’s prices currently at 80 cents per pound, a drop from last month’s 89 cents per pound. The A Index also fell, from 97 to 89 cents per pound.
Chinese cotton prices, measured by the China Cotton Index (CC 3128B), decreased from 114 to 106 cents per pound, translating to a drop from 18,400 to 17,100 RMB per ton. The Chinese Renminbi (RMB) remained stable against the US dollar, maintaining a rate of approximately 7.29 RMB/USD, Cotton Inc said in its Cotton Market Fundamentals & Price Outlook – November 2023.
In India, the decrease in cotton prices was less pronounced. Indian spot prices, specifically Shankar-6 quality, reduced marginally from 90 to 87 cents per pound. In domestic terms, this meant a fall from ₹59,000 to ₹56,700 per candy, with the Indian Rupee (INR) holding steady at around ₹83 per USD.
Contrasting these trends, Pakistani spot cotton prices saw an increase from 72 to 75 cents per pound. In domestic terms, this translated to a rise from 16,600 to 17,700 PKR per maund. The Pakistani Rupee (PKR) experienced a slight depreciation against the dollar, moving from 280 to 285 PKR per USD.
Source: Fibre2Fashion
