International Cotton Price Movements Were Mixed Past Month
Movement in international benchmark prices was mixed over the past month, with NY futures and the A Index increasing, South Asian prices flat to lower, and Chinese prices stable. Indian spot prices (Shankar-6 quality) were flat to higher, holding to levels near Rs 40,000/candy (356 kg) throughout most of February and rose to Rs 41,000/candy in early March.
Prices for the May NY futures contract have trended higher since late February. In the first full week of March, there was a surge that briefly lifted values over 85 cents/lb and new life-of-contract highs. Shortly after, there was a collapse, with values dropping 3-4 cents. In the latest trading, prices have been rising again, with the most recent values 84 cents/lb.
The A Index also increased over the past month. The most recent values, near 92 cents/lb, are about five cents/lb higher than those a month ago, US based Cotton Incorporated said in its latest monthly economic letter ‘Cotton Market Fundamentals & Price Outlook’.
Meanwhile, the China Cotton Index (CC Index, base grade 3128B) was stable in both international and domestic terms over the past month. In international terms, the CC Index held near 113 cents/lb. In domestic terms, prices held near 15,000 RMB/ton.
In Pakistan, in international terms, cotton prices decreased from 80 cents/lb to 76 cents/lb in February. In March, prices moved slightly higher, with the latest levels near 78 cents/lb. In domestic terms, prices ranged between Pk Rs 7,300/maund and Rs 6,900/maund, with the latest levels near Rs 7,100/maund.