Cotton prices in India and Pakistan have rebounded in the latest week due to domestic lockdowns and tight supply at the end of the year. The rebound in cotton prices in India and Pakistan and the replenishment of inventories by global textile mills have provided support for international cotton prices.
At the same time, clothing retail consumption in the United States and the United Kingdom has begun to recover, which is also expected to stimulate cotton consumption in factories. As a result, cotton demand is likely to increase significantly, and the blockade will make Indian and Pakistani factories increasingly short of raw material stocks at the end of the year.
Affected by tight cotton supply and rising demand, India’s domestic cotton prices rose by 2.5% in the past week. Domestic cotton prices in Pakistan rose by 8.8%, and textile mills actively purchased imported cotton, which will drive up quotations from exporting countries.
With the recovery of domestic cotton prices, Indian cotton is uncompetitive in the export market, and textile mills’ procurement needs turn to West African cotton and Argentine cotton. Last week, cotton prices in India stabilized at high levels, while prices of other varieties of origin fell slightly. Domestic CCI sales in India continue, and inventory will be quickly digested.
In addition, abnormal weather during the sowing period in Xinjiang, China, may have a potential impact on later production.
While demand is recovering, global cotton production has stagnated or decreased slightly. This may cause international cotton prices to begin to bottom out, and cotton prices may gradually decline in the next few months. Go up a level. </p
