Global cotton market sees varied trends in June

The December NY/ICE futures contract has fluctuated between 70 and 76 cents per pound. In late June, prices approached slightly above 75 cents but have since shifted towards the lower end of the range. The A Index experienced similar fluctuations, ranging between 81 and 85 cents per pound. It too saw a rise towards the end of June before drifting lower, Cotton Incorporated said in its Monthly Economic Letter - Cotton Market Fundamentals & Price Outlook - July 2024.

A notable decline was observed in the Chinese Cotton Index (CC Index 3128B), which dropped from 102 to 97 cents per pound in international terms. This marked the first time the index consistently stayed below 100 cents per pound since late 2022. Domestically, prices fell from 16,200 to 15,600 RMB (approximately $2,231.43 to $2,148.79) per ton, with the RMB remaining stable against the dollar at approximately 7.27 RMB/USD.

Indian spot prices for Shankar-6 quality cotton saw a slight increase, moving from 85 to 88 cents per pound. This rise reversed the minor decline noted the previous month. In domestic terms, prices increased from ₹56,000 to ₹58,200 (approximately $669.96 to $696.28) per candy, while the INR maintained stability around ₹83 per USD.

In contrast, Pakistani spot prices fell from 86 to 80 cents per pound. Domestically, values decreased from 19,700 to 19,300 PKR (approximately $70.72 to $69.29) per maund, with the PKR steady at around 278 PKR/USD.

Fibre2Fashion News Desk (KD)