Cotton Fibre Market Analysis: Trends, Prices, Insights & Forecast

Insights

• Global cotton prices rose from the second to the third week of September 2024 due to reduced production estimates from the USDA, adverse weather conditions, and a weaker dollar, despite sluggish demand.
• US cotton prices surged as market sentiment improved following a Federal Reserve rate cut and a weaker dollar, which enhanced export appeal, even with a slight decline in export sales.
• In India, cotton prices increased due to reduced planting acreage, strong seed cotton arrivals, and heightened import demand from spinners, despite domestic prices exceeding international levels.
• In Pakistan, prices moved higher due to firm seed cotton prices, quick absorption of arrivals by mills, and slow supply pickup as the crop matures, even though overall arrivals are lower than in previous years.
• Brazilian cotton prices inched up thanks to record lint production confirmed by CONAB and expectations for increased planted areas and production in the upcoming 2024/25 season.
• In China, cotton prices climbed due to a firm RMB basis for imported cotton, decreasing inventory at Qingdao port, and stronger demand in Southeast Asia compared to the domestic market.
• The average Cotlook Index increased to $0.82 per lb.
• Cotton prices are expected to rise in the short term.