In the past week, Chinese textile companies have become more interested in low-priced Indian cotton. At present, Indian cotton is much lower than the international market price, and Brazilian cotton is also very competitive.
In the past week, Indian cotton export quotations fell by 2.5 cents, or 3.75%, while other origins only fell by 1.2-1.6%. Since May, the average price of cotton in India has fallen by 1%, while that in other producing areas has increased by 4.5-9.5%. The price of Brazilian cotton is also much lower than that of American cotton and African cotton. Domestic cotton prices in India continued to fall, with S-6 falling 1.1%.
From the spot market, although the United States’ sales to China have decreased, Indian cotton and US cotton are still the most popular. The quotations of high-grade cotton from Indian ginners are still very attractive. The Far East CIF price of some varieties is close to the ICE futures price. The price of Indian cotton purchased by Chinese textile mills is 8-9 cents cheaper than that of Xinjiang cotton. In addition, Pakistan and Bangladesh have recently begun to increase their operating rates, and inquiries for Indian cotton have begun to increase.
With the increase in international cotton prices, West African and East African cotton has also begun to be sold, and the prices have become more reasonable. In the past, the psychological price gap between buyers and sellers was huge. At present, Indian cotton quotations are still much lower than those from other origins, and private ginners may sell out of cotton stocks in about a month. At this stage, CCI needs to consider whether to continue to maintain the current strong price or sell at a reduced price.
Foreign analysts said that since cotton demand will be suppressed for a long time, international cotton prices are expected to fall after China stops large-scale purchases of US cotton. </p
