14 Oct 2021
(Fibre2Fashion News Desk (KD): Most cotton benchmark prices have surged between late September and now, as per the Cotton Market Fundamentals & Price Outlook October 2021 by Cotton Incorporated.
After touching values below 90 cents/lb on September 20, the December NY/ICE futures contract surged higher. Prices moved lower with the latest USDA report, but current levels remain above $1.
After trading near 103 cents/lb for much of September, the A Index dipped below 100 cents/lb on September 21. Since then, it climbed to levels as high as 120 cents/lb. The Chinese Cotton Index (CC Index 3128B) did not decrease like NY/ICE futures or the A Index in late September, but values moved sharply higher in recent trading nonetheless.
Since late September, the CC Index increased from 128 to 153 cents/lb. In domestic terms, prices increased from 18,100 to 21,700 RMB/ton. The RMB was relatively stable against the dollar over the past month, holding near 6.46 RMB/USD, as per the Cotton Incorporated report.
Indian spot prices (Shankar-6 quality) were comparatively stable. Increases since late September were from 95 to 99 cents/lb. In domestic terms, values increase from Rs.54,500 to Rs.58,400 per candy of 356 kg each.
The INR weakened slightly against the dollar, from Rs.73 to Rs.75 per USD over the past month.
Volatility in Pakistani spot prices resembled that in other markets outside India. In international terms, values fell from over a dollar in early September to as low as 91 cents/lb late in the month.
More recently, prices have been as high as 105 cents/lb. In domestic terms, prices increased from 12,700 to 14,400 PKR/maund (37.32 kg). The PKR weakened slightly against the dollar over the past month, from 168 to 170 PKR/USD. (Source: Fibre2Fashion.com)